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EUR/JPY Technical Analysis – Euro May Be Ready to Bounce

By , Currency Strategist
09 April 2014 22:39 GMT

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Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 140.35 (rising trend line)
  • Resistance: 141.75 (38.2% Fib exp.), 142.89 (falling trend line)

The Euro may be on the verge of a reversal higher against the Japanese Yen after prices put in a bullish Piercing Line candlestick pattern above support at a rising trend line set from mid-February. Near-term resistance is at 141.75, the 38.2% Fibonacci expansion, with a break above that targeting a downward-sloping barrier at 142.89. Trend line support is now at 140.35.

Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat for now.

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dailyclassics_eur-jpy_body_Picture_12.png, EUR/JPY Technical Analysis – Euro May Be Ready to Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

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

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09 April 2014 22:39 GMT