Forex: EUR/JPY Technical Analysis – Six-Week Support at Risk
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 140.59-89 (38.2% Fib ret., trend line), 140.00 (50% Fib ret.)
- Resistance: 142.00 (23.6% Fib ret.), 143.78 (Mar 7 high)
The Euro is testing pivotal support in the 140.59-89 area having fallen as expectedagainst the Japanese Yen. The region is marked by a rising trend line set from early February and the 38.2% Fibonacci retracement. A break downward on a daily closing basis initially exposes the 50% level at 140.00. Near-term resistance is at 142.00, the 23.6% Fib, with a move above that eyeing the March 7 high at 143.78.
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.