Forex: EUR/JPY Technical Analysis – Bullish Flag Setup Negated
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- EUR/JPY Technical Strategy: Flat
- Support: 136.23 (76.4% Fib exp.), 134.69 (100% Fib exp.)
- Resistance: 137.19 (61.8% Fib exp.), 137.97 (50% Fib exp.)
Waiting for confirmation before attempting to trade a would-be bullish Flag chart formation identified yesterday proved prudent: prices overturned the setup, pushing aggressively lower to take the Euro to its weakest in over two months against the Yen.
Prices are now testing support at 136.23, the 76.4% Fibonacci expansion, with a break below that exposing the 100% level at 134.69. Alternatively, reversing above resistance at 137.19 – the 61.8% Fib – targets the 50% expansion at 137.97. An actionable trade setup is absent for the time being and we will remain on the sidelines.
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Daily Chart - Created Using FXCM Marketscope 2.0
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