EUR/JPY: headed to the 117.30 region? - FXStreet

Analysts at Valeria Bednarik, chief analyst at FXStreet explained that the Yen's weakness pushed the EUR/JPY sharply higher, despite lackluster demand for the common currency, with the pair roughly 500 pips higher ever since the week started. 

Key Quotes:

"Speculation that the BOJ will embark on more aggressive easing after Abe's landslide victory during the weekend elections, added to the return of risk appetite."

"The pair is extremely overbought in the short term, as in the 1 hour chart, the technical indicators are barely retreating from extreme readings, whilst the price is now over 300 pips above its 200 SMA, and 400 away from the 100 SMA, but there are no signs that suggest that the pair will turn lower, even in correction mode."

"In the 4 hours chart, technical indicators keep heading north within extreme overbought levels, whilst the price has overcome the 50% retracement of its post-Brexit slump, at 115.70 now the immediate support, with scope to extend up to the 117.30 region, the 61.8% retracement of the same decline."