EUR/JPY Technical Analysis – Euro Continues to Inch Higher
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- EUR/JPY Technical Strategy: Flat
- Support: 138.55, 137.65, 137.36
- Resistance: 139.10, 140.00, 140.72
Euro is probing higher against the Japanese Yen as expected after prices put in a Bullish Engulfing candlestick pattern coupled with positive RSI divergence. Resistance is now at 139.10, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 140.00. Alternatively, a reversal below the 14.6% Fib at 138.55 targets the June 12 low at 137.65, followed by a falling channel floor at 137.36.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at an inherent disadvantage against its G10 counterparts. As such, we will opt not pursue buying opportunities, looking to any corrective gains for an opening to enter short (as discussed in our weekly outlook).
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.