Forex: EUR/JPY Technical Analysis – Opting to Pass on Long Trade
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- EUR/JPY Technical Strategy: Flat
- Support: 139.83 (38.2% Fib ret.), 138.45 (23.6% Fib ret.)
- Resistance: 140.95 (50% Fib ret.), 142.07 (61.8% Fib ret.)
The Euro began to rise against the Japanese Yen as expected having formed a bullish Piercing Line candlestick pattern. A break above 139.83, the 38.2% Fibonacci retracement has exposed the 50% level at 140.95, with a further push beyond that eyeing the 61.8% Fib at 142.07. Alternatively, a turn back below 139.83 targets the 23.6% retracement at 138.245.
Assuming a risk/reward ratio of no less than 1:1, a long position triggered no lower than 140.39 with an initial target of 140.95 and a stop on a close below 139.83 would be acceptable. Our fundamental outlook warns against being long the Euro however and we will opt to pass on this opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com