EUR/JPY: bears watching for a break of 114.00 - FXStreet

Valeria Bednarik, chief analyst at FXStreet, exlained that the EUR/JPY pair advanced up to 114.68, its highest in almost a month amid yen's weakness at the beginning of the day, but gave up most of its daily gains to close the day flat, a few pips above the 114.00 mark.

Key Quotes:

"The short term picture for the pair is neutral, given that in the 1 hour chart,  technical indicators present sharp bearish slopes within bearish territory, albeit the price is holding its 100 and 200 SMAs, both converging around 113.40/50.

In the 4 hours chart, the price was unable to extend beyond a horizontal 200 SMA, but indicators have resumed their advances within positive territory and after correcting overbought conditions, maintaining the downside limited. A bearish acceleration below 114.00, the 50% retracement of the latest weekly rally, should support a continued decline for this Tuesday, with scope then to return to the 113.00 region."