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- EUR/JPY Technical Strategy: Flat
- Support: 138.95 (76.4% Fib exp.), 138.34 (100% Fib exp.)
- Resistance: 139.33 (61.8% Fib exp.), 139.64 (50% Fib exp.)
The Euro is stalling having hit a three-month low after four consecutive days in negative territory against the Japanese Yen. Initial support is now at 138.95, the 76.4% Fibonacci expansion, with a break below that targeting the 100% level at 138.34. Near-term resistance is marked by the 61.8% Fib at 139.33. A reversal back above that opens the door for a challenge of the 50% expansion at 139.64.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com