EUR/JPY Technical Analysis – Stalling at May Swing Low
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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 is hovering at familiar support against the Japanese Yen having recoiled from resistance above the 139.00 figure. A daily close below the 138.13-33 area, marked by the May 21 low and the 23.6% Fibonacci expansion, clears the way for a challenge of the 38.2% level at 137.70. Resistance is at 139.16, 23.6% Fib retracement, with a move above that targeting 139.79.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. Wewill 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.