Forex: EUR/JPY Technical Analysis – Euro in Consolidation Mode
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- EUR/JPY Technical Strategy: Flat
- Support: 140.73-141.13 (horizontal pivot, trend line, 38.2% Fib ret.), 140.00 (50% Fib ret.)
- Resistance: 142.00 (23.6% Fib ret.), 143.78 (Mar 7 high)
The Euro Pound is stalling at rising trend line support set from early February (141.13) after falling as expected against the Japanese Yen. This barrier is reinforced by a horizontal pivot at 140.73 and the 38.2% Fibonacci retracement at 140.89. A break below this region initially exposes the 50% Fibonacci retracement squarely at the 140.00 figure. Alternatively, a move above resistance at 142.00 – the 23.6% Fibonacci retracement, targets the March 7 high at 143.78.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, entering long looks premature absent a defined bullish reversal signal. We will continue to stand aside for now, waiting for a more attractive setup to present 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.