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- EUR/JPY Technical Strategy: Flat
- Support: 140.00 (50% Fib ret.), 139.11 (61.8% Fib ret.)
- Resistance: 140.89 (38.2% Fib ret.), 141.32 (rising trend line)
The Euro found interim support at 140.00 against the Japanese Yen but positioning continues to favor weakness after prices broke a rising trend line set from mid-February. A daily close below 140.00 (a psychological barrier bolstered by the 50% Fibonacci retracement) targets the 61.8% level at 139.11. Alternatively, a turn back above the 38.2% Fib at 140.89 opens the door for a test of the trend line (now at 141.32) as resistance.
Risk/reward considerations argue against taking a position at current levels. We will continue to stand aside for now, waiting for the pair to yield a more actionable trading opportunity in the days ahead.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com