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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 135.94, 133.10, 131.07
- Resistance:137.97, 139.47, 141.23
The Euro paused to digest losses against the Japanese Yen after prices found support below the 136.00 figure. A daily close below the 14.6% Fibonacci expansion at 135.94 exposes the 133.10-75 area (support shelf, June 29 low). Alternatively, a turn above the 137.28-97 zone (23.6% level, support-turned-resistance) clears the way for a test of the 38.2% Fib at 139.47.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
