Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair extended its rally further last Friday, and posted 127.28 its highest in nearly a month. Key Quotes: "The Japanese yen has lacked life of its own last week, depending mostly on market's sentiment and stocks to post limited moves against its majors rivals. The EUR/JPY has been persistently under pressure, and despite the latest bounce a long term trend change is still unconfirmed. Investors may resume JPY buying ahead of the end of the fiscal year in Japan, and on the back of increasing fears of a global slowdown. From a technical point of view, the daily chart shows that the latest advance has stalled well below a bearish 100 SMA, currently around 129.20, while the technical indicators have partially lost upward strength near overbought levels, all of which limits chances of a stronger advance. In the shorter term, and according to the 4 hours chart, the risk remains towards the upside, as despite the technical indicators are beginning to retreat from overbought levels, the price remains near its highs and pressuring the 200 SMA." For more information, read our latest forex news.