Forex: EUR/JPY Technical Analysis – Euro Drops Most in Six Weeks
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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 finally produced downside follow-through against the Japanese Yen as expected, with prices slumping the most in six weeks. Prices are testing support at 140.89, the 38.2% Fibonacci retracement, with a break below that exposing a rising trend line at 140.33 and the 50% level squarely at the 140.00 figure.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, a viable reversal signal arguing in favor of a long trade is absent for the time being.We will remain on the sidelines 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.