Forex: EUR/JPY Technical Analysis – Is Bullish Momentum Fading?
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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.)
Prices continue to tread water below resistance in the 140.73-95 area, marked by the January 13 close and the 50% Fibonacci retracement. Negative RSI divergence warns of ebbing bullish and hints a reversal lower may be ahead. Breaking support in the 139.83-93 region, defined by the 38.2% Fib and the February 11 close, exposes a horizontal pivot at 139.31 and the 23.6% retracement at 138.45. Alternatively, a turn above resistance aims for the 61.8% level at 142.07.
RSI divergence alone is not an actionable signal and requires added confirmation to trigger a short position. We will continue to stand on the sidelines for now, waiting for prices to produce an actionable entry opportunity.
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.