EUR/JPY rebounds and rises back toward 114.50

EUR/JPY is practically flat for the day. The pair was losing ground but during the last hours, a rally of USD/JPY pushed EUR/JPY back above 114.00. Currently is trading near 114.40/50, around the same level it closed yesterday.

On European hours it peaked at 114.80 and then turned to the downside. It bottomed at 113.32, before bouncing to the upside. For the second day in a row the pair reached higher highs, and higher lows but the upside continues to be limited and still remains sharply lower compared to the level it had a week ago.

EUR/JPY technical outlook

“The short term picture remains neutral, as in the 1 hour chart, the price is holding above its 100 SMA, currently at 113.32, whilst the Momentum indicator is hovering around its mid-line, with no certain directional strength. The RSI indicator in the mentioned time frame, heads lower around 50, also lacking clear momentum, while in the 4 hours chart, the technical indicators have accelerated their declines and seem poised to break below their mid-lines, suggesting the pair may extend its decline on a break below the mentioned support”, said Valeria Bednarik, Chief Analyst at FXStreet.