EUR/JPY: fresh three year lows and now to 120.00 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen kept rallying this Thursday, with no new catalyst behind the advance.

Key Quotes:

"The EUR/JPY pair plummeted down to a fresh 3-year low of 121.05, recovering modestly at the end of the US session as stocks are modestly higher. Nevertheless, the pair is struggling around former year low of 121.47, and in the short term, the recovery seems mostly a short-lived correction, given that in the 1 hour chart, the technical indicators are turning back south within negative territory after correcting extreme oversold readings, whilst the price is far below the 100 and 200 SMAs."

"In the 4 hours chart the RSI indicator keeps hovering around 30, while the Momentum indicator has lost its downward strength but remains well below its 100 level, as the moving averages turn slowly lower well above the current level, all of which favors a continued decline down to 120.00."