EUR/JPY: overbought? 115.00 is key support - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the common currency gathered fresh momentum and extended its gains versus most of its majors rivals after the ECB decided to leave its economic policy unchanged, with the EUR/JPY pair advancing above the 115.00 level.

Key Quotes:

"Despite the common currency weakened after the initial reaction, a sharp slide in the Japanese yen kept the pair on demand, extending up to 115.33 in the American afternoon.

Holding near the mentioned high, the short term picture is now bullish, as the price is standing above its 100 and 200 SMAs, both converging with a Fibonacci level around 115.00, providing an immediate intraday support, whilst technical indicators present bullish slopes within overbought territory.

In the 4 hours chart, the price has recovered sharply above a modestly bullish 100 SMA, whilst the Momentum indicator heads sharply higher around its 100 level, and the RSI also advances, but already into positive territory, around 58."