EUR/JPY Technical Analysis – Yen Rallies for Fifth Day
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- EUR/JPY Technical Strategy: Flat
- Support: 137.83 (50% Fib exp., channel floor), 137.30 (61.8% Fib exp.)
- Resistance: 138.36 (38.2% Fib exp.), 139.02 (23.6% Fib exp.)
The Euro declined for a fifth consecutive day against the Japanese Yen, setting yet another four-month low. Sellers are testing falling channel support at 137.48, a barrier reinforced by the 61.8% Fibonacci expansion at 137.30. A break below the latter level on a daily closing basis exposes the 76.4% Fib at 136.64. Alternatively, a reversal above the 50% expansion at 137.83 clears the way for a test of the 38.2% mark at 138.36.
Risk/reward considerations argue against entering short with prices sitting just above support. On the other hand, taking up the long side is 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.