EUR/JPY: limited upside potential below weekly high 119.13 - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that EUR/JPY advanced modestly, but failed to sustain gains on EUR's weakness, barely trading 40 pips above its daily opening by the end of the day.

Key Quotes:

"The Japanese yen eased against most of its major rivals as risk sentiment kept improving, helping the pair reach a daily high of 118.68, before Draghi's comments put the common currency in selling mode. Despite closing in the green, the pair has posted a lower low and a lower high daily basis, in line with the dominant bearish trend."

"Intraday, the 4 hours chart presents a limited upward potential, as the technical indicators have bounced from near their mid-lines, heading north. but below previous highs, whilst the price remains well below a bearish 100 SMA, around 120.20.

The weekly high stands at 119.13, and only a clear advance beyond it could favor additional advances towards the 120.00 region."