EUR/JPY: bulls need 116.60 to hold - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that following a dull start of the day, the Japanese yen fell in US trading hours, as despite US equities failed to extend their rallies, held  near record highs.

Key Quotes:

"The EUR/JPY pair recovered the 117.00 level, and points to close the day above the 61.8% retracement of its post-Brexit slump and 117.20, now the immediate support, maintaining the positive tone in the short term, as in the 1 hour chart, the price recovered quickly after briefly breaking below its 100 SMA, now around 116.60."

"In the same chart, technical indicators have turned modestly lower within positive territory, still far from confirming a bearish move ahead."

"In the 4 hours chart, however, the price held above its 200 SMA, whilst the technical indicators bounced from their mid-lines, maintaining the risk towards the upside, as long as the mentioned 116.60 level holds."