EUR/JPY: narrow two-way business, testing 124 handle

EUR/JPY had been better bid towards and through the previous highs for the week, but has since fallen back below the 4hr 200 sma at 124.16 and then attracting demand again.

There has been a lack of scheduled impetus besides Central Bank chat with both BoJ officials jawboning and Fed officials coming across with a hawkish tone today.
"Governor Kuroda talking about the ECB's negative rate loan program, said that Japan's interest rates can technically go as low as the ECB's, but the effect is more and more limited as time goes by without real action," explained Valeria Bednarik, chief analyst at FXStreet noting that the short-term picture for the pair is for the most neutral.

EUR/JPY levels

Valeria Bednarik suggested that momentum in price has stabilized in the 4 hours chart, "The price remains trapped between the 100 and 200 SMAs, while the technical indicators head lower within positive territory, not enough to confirm a downward continuation." On a break out, the 123.65 support zone and 100 sma on the hourly exposes the 200 at 123.11. Below there, 121.48 is key as the 6th May lows.