EUR/JPY: downside favoured below 122.70 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair retreated from a daily high of 122.64, to close modestly lower around 121.85, as the Japanese Yen got a boost from falling US yields, following Yellen's lack of conviction over a rate hike this summer on her Monday's speech. 

Key Quotes:

"The short term technical outlook favors the downside, although there's a clear absence of directional strength at the time being, given that in the 1 hour chart, the technical indicators head nowhere within bearish territory, whilst the price rests above its 100 SMA around 121.75. 

In the 4 hours chart, the technical indicators are posting modest bounces from their mid-lines, but remain below early highs, whilst the price faltered around the 100 SMA currently capping the upside around 122.70."