Forex: EUR/JPY Technical Analysis – Upside Reversal in the Works?
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- EUR/JPY Technical Strategy: Flat
- Support: 137.19 (Flag bottom, 61.8% Fib exp.), 136.23 (76.4% Fib exp.)
- Resistance: 137.97 (50% Fib exp.), 138.74 (38.2% Fib exp.)
The Euro is attempting to find support having dropped to a two-month low against the Japanese Yen last week. As with GBP/JPY, prices maybe in the process of carving out a Flag chart pattern. The setup is typically indicative of trend continuation, which carries bullish implications in this case, but confirmation is required on a daily close above the formation’s upper boundary (now at 140.04) to make for an actionable setup.
For now, the mere testing of support does not offer clear-cut directional cues in and itself and we are holding on the sidelines until a workable trade opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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