EUR/JPY Technical Analysis – Rally Falters Below 140.00
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- EUR/JPY Technical Strategy: Flat
- Support: 139.02 (23.6% Fib exp.), 138.36 (38.2% Fib exp.)
- Resistance: 139.42 (14.6% Fib exp.), 139.95 (Apr 28 low)
The Euro may be readying to renew its downward trend against the Japanese Yen after prices recoiled lower from support-turned-resistance at 139.95, the April 28 low. A break below 139.42, the 14.6% Fibonacci expansion, has exposed the 23.6% level at 139.02. Moving further below that targets the 38.2% Fib at 138.36. The 139.42 mark has been recast as near-term resistance, with a turn back above that clearing the way for another test of 139.95.
The available trading range is too narrow to justify a trade on the long or the short side from a risk/reward perspective. We will remain on the sidelines and wait for a more attractive opportunity to present itself.
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.