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Forex: EUR/JPY Technical Analysis – Six-Week Support at Risk

Forex: EUR/JPY Technical Analysis – Six-Week Support at Risk

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • 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.

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dailyclassics_eur-jpy_body_Picture_12.png, Forex: EUR/JPY Technical Analysis – Six-Week Support at Risk

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.

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