EUR/JPY Technical Analysis – Cautiously Drifting to Resistance
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- EUR/JPY Technical Strategy: Flat
- Support: 140.68 (rising trend line)
- Resistance: 141.75 (38.2% Fib exp.), 142.56 (falling trend line)
The Euro is inching higher against the Japanese Yen having completed a bullish Piercing Line candlestick pattern at rising trend line support from mid-February. Follow-through has been lackluster however, raising doubts about the bulls’ conviction going forward. Breaking above initial resistance at 141.75, the 38.2% Fibonacci expansion, on a daily closing basis exposes a downward-sloping trend line resistance at 142.56. Trend line support is now at 140.68.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. We will remain flat for the time being, 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