Valeria Bednarik, chief analyst at FXStreet explaind that the EUR/JPY pair kept falling extending its decline to 118.50 this Tuesday, level last seen in January 2013, as the Japanese yen remained strong on safe-havens' demand, whilst the common currency succumbed to dollar's demand.Key Quotes:"The pair bounced from the mentioned low, but met selling interest on approaches to the 119.00 region, indicating bears are in the driver's seat. In the short term, the 1 hour chart shows that the 100 and 200 SMAs have extended their declines well above the current level, whilst the technical indicators present modest bearish slopes well below their mid-lines.In the 4 hours chart, technical indicators hold flat within oversold readings, as the latest decline seems a bit overextended. Upward corrective movements will likely depend on FED's announcement, but it would take an unlikely recovery beyond 120.00 to revert the dominant bearish trend."
TenkoFX - Analytics