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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 138.13 (May 21 low), 138.00
- Resistance: 139.16 (23.6% Fib ret.), 139.79 (38.2% Fib exp.)
The Euro has stalled after trying to initiate a move higher against the Japanese Yen having found support above the 138.00 figure. The first layer of resistance comes in at 139.16, the 23.6% Fibonacci retracement, with a daily close above that clearing the way for a test of the 38.2% level at 139.79. The first layer of support is at 138.13, the May 21 low, followed by the 138.00 handle.
Prices are too close to resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal warns against taking up the short 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
