EUR/JPY Technical Analysis – Momentum Remains Absent
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- EUR/JPY Technical Strategy: Flat
- Support: 138.55, 137.65, 137.18
- Resistance: 139.10, 140.00, 140.29
Euro edged upward as expected against the Japanese Yen 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 137.18.
The ECB is shaping up to be the most dovish of the leading central banks, putting the Euro at a 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.