EUR/JPY: 122.70 on the cards? - FXStreet

Valeria Bednarik, chief analyst at FXStreet noted that the EUR/JPY pair edged lower on the back of EUR's weakness, but held within its weekly range.

Key Quotes:

"The Japanese yen was generally weaker as BOJ's Kuroda stressed once again  that the Central Bank is ready to act if the currency's strength threatens the inflation goal, but declines were limited by the negative tone in worldwide stocks. Now barely holding above the 123.00 level, the overall stance is bearish for the pair, although it will take some additional declines to confirm a downward extension."

"In the 1 hour chart, the technical indicators lack directional strength within negative territory, but the price remains below a now bearish 100 SMA, which accelerated its decline after breaking below the 200 SMA.

In the 4 hours chart, the latest candle is developing below a bearish 100 SMA after the price failed earlier in the day to overcome the 200 SMA, whilst the technical indicators head slightly lower below their mid-lines, supporting a downward continuation on a break below 122.70."