Forex: EUR/JPY Technical Analysis – Testing Above 140.00 Mark
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- EUR/JPY Technical Strategy: Flat
- Support: 138.45 (23.6% Fib ret.), 136.22 (Feb 4 low)
- Resistance: 139.83 (38.2% Fib ret.), 140.95 (50% Fib ret.)
The Euro is rising against the Yen as expected after showing a bullish Piercing Line candlestick pattern. A daily close above 139.83, the 38.2% Fibonacci retracement, targets the 50% level at 140.95. Alternatively, turning lower through the 23.6% Fib at 138.245 exposes the February 4 low at 136.22.
Entering long seems premature absent confirmation of an upside breakout but a short position appears likewise unattractive without a defined reversal signal. Furthermore, the Yen’s sensitivity clouded risk appetite trends warn against taking directional bets on fundamental grounds. We will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com