EUR/JPY Technical Analysis – Stalling After Range Break
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- EUR/JPY Technical Strategy: Flat
- Support: 138.34, 138.00, 137.70
- Resistance: 138.58, 138.87, 139.15
The Euro stalled against the Japanese Yen after dropping through the floor of a four-day congestion range. The first layer of support is at 138.34, the 23.6% Fibonacci expansion, with a daily close below that opening the door for a test of the 38.2% level at 137.99. Resistance comes in at 138.58, the 38.2% Fib retracement. A turn back above that aims for the 50% threshold at 138.87.
The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside, waiting for a more attractive opportunity to present itself.
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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.