EUR/JPY Technical Analysis – Cautious Recovery Continues
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- EUR/JPY Technical Strategy: Flat
- Support: 138.55, 137.65, 137.31
- Resistance: 139.10, 140.00, 140.72
Euro continues to edge cautiously higher against the Japanese Yen as expected after producing a Bullish Engulfing candlestick pattern. Near-term resistance now stands at 139.10, the 23.6% Fibonacci retracement. A daily close above that targets the 38.2% level at 140.00. Alternatively, a turn below the 14.6% Fib at 138.55 targets the June 12 low at 137.65, followed by a falling channel floor at 137.31.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at a broad disadvantage against its major currency counterparts. With that in mind, we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity.
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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.