EUR/JPY: mixed technical outlook on fresh lows - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen was the best performer on the FX board this Wednesday, resuming its advance against all of its major rivals, as media reports suggest that local policymakers are split over what to do in this upcoming meeting,  with some supporting further rate cuts, but others wanting to remain on hold. 

Key Quotes:

"The news added to broad dollar's weakness on poor macroeconomic data, resulting in the EUR/JPY pair sinking to 113.80, the lowest since August 26th."

"The pair pare losses at a major Fibonacci support, the 50% retracement of the June low/July high rally, but the risk remains towards the downside in the short term, as in the 1 hour chart, the price is developing below its moving averages, with the 100 SMA accelerating its decline above the current level, and indicators turning lower within neutral territory, after recovering from extreme oversold territory."

"In the 4 hours chart, the price is a handful of pips above the 100 and 200 SMAs, both within a tight 20 pips range, while indicators are recovering ground from oversold levels, but still within negative territory, limiting the downward potential, but far from suggesting a steeper recovery ahead."