Forex: EUR/JPY Technical Analysis – Topping Setup Still in Play
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- EUR/JPY Technical Strategy: Flat
- Support: 142.63 (76.4% Fib exp.), 141.89 (61.8% Fib exp.)
- Resistance: 143.82 (100% Fib exp.), 145.01 (123.6% Fib exp.)
The Euro still looks to be carving out a top against the Japanese Yen after prices produced a bearish Dark Cloud Cover candlestick below resistance at 143.82, the 100% Fibonacci expansion. Initial support is at 142.63, the 76.4% Fib, with a daily close below that exposing the 61.8% level at 141.89. Alternatively, a turn above resistance targets the 123.6% expansion at 145.01.
Prices are too close to relevant support to justify a short position from a risk/reward perspective, while a viable reversal signal arguing in favor of a long trade is absent. We will remain on the sidelines for now until a more actionable setup presents itself.
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.