FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair plummeted to 126.61, as the Japanese yen surged sharply at the beginning of the day, tracking the slide in the Nikkei, which lost over 600 points and closed at its lowest in two years. Key Quotes: "The pair bounce late London session, as a Japanese official said that they are closely watching currency markets, but the recovery was limited by former lows in the 1267.30 region. The pair holds to its long term bearish bias, and the 1 hour chart maintains the risk towards the downside, given that the technical indicators are turning back south after correcting oversold readings, while the price is far below the 100 and 200 SMAs, both converging in the 127.90 region." "In the 4 hours chart, the Momentum indicator lacks direction below the 100 level, while the RSI indicator bounced from oversold territory, but remains around 40, far from suggesting additional gains at the time being. 2015 low posted last April comes at 126.08 and a break below it should lead to some panic selling, with the market then eyeing 124.40, a strong midterm static support." For more information, read our latest forex news.