Valeria Bednarik, chief analyst at FXStreet explained that the EUR/JPY pair turned back south this Wednesday, as the common currency under-performed against all of its major rivals, although with the JPY also weak, the pair remained within its recent range.
Key Quotes:
"A change in market's mood after positive data coming from China spooked fears of a global economic slowdown, led the way, in spite of macroeconomic data.
Holding above the 123.00 level, the 1 hour chart for the EUR/JPY pair shows that the price is back below its 100 SMA, whilst the technical indicators head south below their mid-lines, all of which indicates that the risk remains towards the downside.
Copy signals, Trade and Earn $ on Forex4you - https://www.share4you.com/en/?affid=0fd9105
In the 4 hours chart, the Momentum indicator has turned south within neutral territory, whilst the RSI also heads lower around 37, in line with the shorter term outlook. "
