EUR/JPY Technical Analysis – May Bottom Under Pressure
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- EUR/JPY Technical Strategy: Flat
- Support: 138.13-33 (May 21 low, 23.6% Fib exp.), 137.70 (38.2% Fib exp.)
- Resistance: 139.16 (23.6% Fib ret.), 139.79 (38.2% Fib exp.)
The Euro turned lower against the Japanese Yen once again having found resistance above the 139.00 figure. Near-term support is in the 138.13-33 area, marked by the May 21 low and the 23.6% Fibonacci expansion. A break downward on a daily closing basis exposes the 38.2% level at 137.70. Alternatively, a reversal above the 23.6% Fib retracement at 139.16 clears the way for a test of the 38.2% threshold at 139.79.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, taking up the long side seems premature absent a defined bullish reversal signal. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.