Forex: EUR/JPY holding above 119.50

FXstreet.com (Barcelona) - With Nikkei closing down yesterday an extra -1%, the Tokyo index closed at the 12k round level, falling for fourth consecutive day, something did not happened since late August last year, losing about -5% from recent fresh 4.5-year highs back in mid March above the 12650 points. EUR/JPY in the other hand has managed to bounce from yesterday's fresh 1-month lows at 119.09, last at 119.67, while Nikkei opens now at 12100 up +0.82%.

“The hourly chart shows price still well below its 100 SMA that heads south above current price, while indicators turn flat in positive territory, still far from suggesting more short term gains,” says Valeria Bednarik, Chief Analyst at Fxstreet.com, adding: “In the 4 hours chart bias remains to the downside, as indicators head south after latest move higher, with 119.50 as immediate support.”

“Key support remains at 118.70, past February 25th daily low, and upward movements need to break and establish above 122.00 to deny current bearish trend,” Valeria expands, concluding: “Break below 118.70 should favor a midterm slide towards next big support in the 115.50 area.”

The analyst finds support levels at: 119.50, 119.10 and 118.70, while resistance levels at: 120.00, 120.45 and 120.90.