EUR/JPY Technical Analysis – Euro Rises to 3-Week High
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- EUR/JPY Technical Strategy: Flat
- Support: 139.03 (23.6% Fib ret.), 137.96-138.13 (May 21, May 29 lows)
- Resistance: 139.68 (38.2% Fib ret.), 140.21 (50% Fib ret.)
The Euro pushed higher for a fourth consecutive day against the Japanese Yen, hitting the highest level in three weeks. Prices are testing resistance at 139.68, the 38.2% Fibonacci retracement, with a break above that exposing the 50% level at 140.21. Alternatively, a reversal below the 23.6% Fib at 139.03 targets recent swing lows in the 137.96 -138.13 area.
Risk/reward considerations argue against entering long with prices sitting just at resistance. On the other hand, taking up the short side seems premature absent a defined bearish 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.