Forex: EUR/JPY Technical Analysis – Trend Line Resistance Eyed
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- EUR/JPY Technical Strategy: Flat
- Support: 142.84 (38.2% Fib exp.), 141.73 (23.6% Fib exp.)
- Resistance: 143.10 (trend line), 143.73 (50% Fib exp.)
The Euro continued to advance against the Japanese Yen, with prices clearing resistance at 142.84 marked by the 38.2% Fibonacci expansion. Buyers now aim to challenge a falling trend line set from mid-December, now at 143.10, followed by the 50% level at 143.73. Alternatively, a turn back below 142.84 eyes the 23.6% Fib at 141.73.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, entering short looks premature absent a defined bearish reversal signal. With that in mind, 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