EUR/JPY: still looking bearish on the 4hr chart - FXStreet

Valeria Bednarik, chief analyst at FXStreet, explained that the EUR/JPY pair reached a daily high of 113.49 thanks to the combination of EUR demand and JPY weakness seen during the Thursday post-Fed's session.

Key Quotes:

"Nevertheless, the pair is now struggling to hold gains above the 113.00 mark as the common currency lost attractive, and seems poised to extend its decline, particularly on a break below 112.85, an immediate Fibonacci support. The 1 hour chart shows that the price failed to surpass a bearish 100 SMA before starting to retreat, while technical indicators head south within positive territory, not yet confirming a downward extension. In the 4 hours chart, technical indicators have turned sharply lower within negative territory and after correcting oversold conditions, while the price continues developing far below its moving averages, indicating that the risk remains towards the downside.

Support levels: 112.85 112.40 112.00

Resistance levels: 113.45 113.90 114.40"