Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair rallied on the back of JPY weakness, as a sharp recovery in Asian and European equities, kept the Japanese currency on the selling side ever since the day started.
"The JPY was weighed by fresh comments from the Finance Minister Taro Aso, who, speaking before the parliament said that "Japan will obviously intervene if one-sided moves persist." The upward momentum in worldwide share markets did the rest."
"Now trading around a major resistance, the 124.40 price zone, the pair looks overstretched in the short term, but retains its bullish tone, as in the 1 hour chart, the 100 SMA crossed above the 200 SMA far below the current level and for the first time since early this year, whilst the RSI indicator hovers around 71, with no aims to turning lower.
In the 4 hours chart, the technical indicators present strong bullish slopes, despite being in overbought territory, whilst the price is pressuring the 200 SMA. An upward acceleration above the current 124.40 region can see the pair extending its rally up to 126.45, April 28th daily high."
Source ↔ Download MP3 Free