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Forex: EUR/JPY Technical Analysis – Topping Setup Still in Play

By , Currency Strategist
11 March 2014 22:03 GMT

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Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 142.63 (76.4% Fib exp.), 141.89 (61.8% Fib exp.)
  • Resistance: 143.82 (100% Fib exp.), 145.01 (123.6% Fib exp.)

The Euro still looks to be carving out a top against the Japanese Yen after prices produced a bearish Dark Cloud Cover candlestick below resistance at 143.82, the 100% Fibonacci expansion. Initial support is at 142.63, the 76.4% Fib, with a daily close below that exposing the 61.8% level at 141.89. Alternatively, a turn above resistance targets the 123.6% expansion at 145.01.

Prices are too close to relevant support to justify a short position from a risk/reward perspective, while a viable reversal signal arguing in favor of a long trade is absent. We will remain on the sidelines for now until a more actionable setup presents itself.

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dailyclassics_eur-jpy_body_Picture_12.png, Forex: EUR/JPY Technical Analysis – Topping Setup Still in Play

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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11 March 2014 22:03 GMT