The EURJPY consolidation is working off overbought conditions.

Despite the weakness in the EURUSD the last couple sessions, the EURJPY has held up relatively well. We are consolidating above the 120.00 level but below the recent trend highs near 121.50. The fact of the matter is the pair is consolidating after a very impulsive move higher which risks an eventual move towards the 200dma. The daily RSI has worked off overbought conditions, and we could be away from one “headline” that pushes the pair into a breakout (or breakdown) situation.

Steve Voulgaridis