EUR/JPY: modest bullish outlook within a reversal - FXStreet

EUR/JPY is currently in consolidation of the recent bullish trend from the lows on the 113 handle and has turned around in Tokyo after Yen's pre-opening bid.

EUR/JPY was sold into in the open of Asia with a strong yen across the board in a risk-off environment following last week's poor ending on Wall Street and investors seeking a steady yield opposed to risky asset classes with the disappointments in US data of late and concerns that Central Banks are running out of ammunition. elsewhere, the ECB held off from easing further last week, disappointing markets, but have left the door open for further action later this year exposing downside in the euro.

EUR/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair has been in a consolidative stage for over two months, confined within Fibonacci retracements. "In the daily chart, the price is developing below a sharply bearish 100 DMA, currently around 116.60, and the level to regain to see the downward pressure easing,: adding, "In the mentioned time frame, technical indicators hold within positive territory, but show no directional momentum. Shorter term, the 4 hours chart, presents a modest bullish bias, given that the price has held above 115.05, the 38.2% retracement of the latest bullish run and the immediate support, while technical indicators remain within positive territory, although also without clear directional strength."