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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 139.11 (61.8% Fib ret.), 138.01 (76.4% Fib ret.)
- Resistance: 140.00 (50% Fib ret.), 140.89 (38.2% Fib ret.)
The Euro dropped to a three-month low against the Japanese Yen after clearing support at the 140.00 figure. Sellers are testing the 61.8% Fibonacci retracement at 139.11, with a break below that aiming for the 76.4% level at 138.01. Alternatively, a turn back above the 50% Fib at 140.00 aims for the 38.2% retracement at 140.89.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
