Forex: EUR/JPY Technical Analysis – Former Support Line Retested
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- EUR/JPY Technical Strategy: Flat
- Support: 141.73 (23.6% Fib exp.), 139.95 (Mar 28 low)
- Resistance: 142.27 (trend line), 142.84 (38.2% Fib exp.)
The Euro looks poised to continue higher against the Japanese Yen after prices cleared resistance at 141.73, the 23.6% Fibonacci expansion. Buyers are now testing support-turned-resistance at a rising trend line set from early February (142.27), with a break above that exposing the 38.2% level at 142.84. Alternatively, a reversal back below 141.73 exposes the March 28 lowat 139.95.
Risk/reward considerations argue against entering long while prices trade squarely at relevant resistance. On the other hand, a short position lacks an actionable downward reversal signal to suggest that resistance will hold. As such, we will remain flat 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.