Forex: EUR/JPY Technical Analysis – Turn Lower Possible Ahead
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- EUR/JPY Technical Strategy: Flat
- Support: 142.84 (38.2% Fib exp.), 141.73 (23.6% Fib exp.)
- Resistance: 143.08 (trend line), 143.73 (50% Fib exp.)
The Euro may be readying to turn lower against the Japanese Yen as prices show a Shooting Star candlestick at resistance in the 142.84-143.08 area, marked by the 38.2% Fibonacci expansion and a falling trend line set from mid-December. A reversal downward from here sees initial support at 141.73, the 23.6% level. Alternatively, a daily close above the trend line exposes the 50% Fib at 143.73.
A Shooting Star candle represents indecision and is not an actionable short trade signal in its own right absent confirmation. With that in mind, we will continue to stand aside for now until prices offer greater directional clarity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com