EUR/JPY: downside corrections a buy on dips? - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair recovered some ground at the beginning of the week, as adding to EUR's demand was a weakening JPY.

Key Quotes:

"The Japanese yen gave back part of its recent gains, following Japanese Prime Minister Abe comments during the past Asian session, pledging for more stimulus measures next autumn."

"The recovery can continue, should market sentiment continues improving, but only in the short term, as in the 1 hour chart, the price has stalled around a strongly bearish 100 SMA, currently around 121.95. Nevertheless and in the same chart, the technical indicators have turned back north after testing their mid-lines, something that should keep the downside limited."

"In the 4 hours chart, the Momentum indicator heads higher after crossing its 100 level, but the RSI indicator has turned flat around 50, whilst the price is well below its 100 and 200 SMAs."