EUR/JPY Technical Analysis – Resistance Met Below 141.00
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- EUR/JPY Technical Strategy: Flat
- Support: 139.83-93 (38.2% Fib ret., Feb 11 close), 139.31 (horizontal pivot)
- Resistance: 140.73-95 (Jan 13 close, 50% Fib ret.), 142.07 (61.8% Fib ret.)
The Euro launched higher anew against the Japanese Yen, with prices moving to challenge resistance in the 140.73-95 area marked by the January 13 close and the 50% Fibonacci retracement. A break above this barrier on a daily closing basis exposes the 61.8% level at 142.07. Near-term support is in the 139.83-93 region, defined by the 38.2% Fib and the February 11 close. Turning below that targets a horizontal pivot at 139.31, followed by the 23.6% retracement at 138.45.
Risk/reward considerations argue against entering long with prices trading in such close proximity to relevant resistance. On the other hand, an actionable short trade signal is absent. We will stand aside for now and wait for something more attractive to emerge.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.