Forex: EUR/JPY Technical Analysis – Sellers Struggle with Momentum
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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 is struggling to establish downside follow-through against the Japanese Yen after prices put in a bearish Dark Cloud Cover candlestick below resistance at 143.82, the 100% Fibonacci expansion. A daily close below support at 142.63, the 76.4% Fib, initially exposes the 61.8% level at 141.89. Alternatively, an upward reversal above 143.82 aims for the 123.6% expansion at 145.01.
Risk/reward considerations continue to argue against taking a short position with prices trading in close proximity to relevant support. On the other hand, a long position taken on the assumption that support will hold seems premature without a defined reversal signal. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.