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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 138.79, 138.36, 137.91
- Resistance: 139.49, 140.06, 140.63
The Euro is aiming to extend higher against the Japanese Yen after prices narrowly cleared long-standing resistance below the 139.00 figure. Buyers now aim to challenge the 38.2% Fibonacci retracement at 139.49, with a break above that on a daily closing basis exposing the 139.95-140.06 area marked by the March 28 low and the 50% level. Alternatively, a reversal back below the 23.6% Fib at 138.79 targets the 14.6% retracement at 138.36.
The ECB seems to be the most dovish of the major central banks, putting the Euro at structural disadvantage against its G10 FX counterparts. With that in mind, we will opt not to pursue a long position and wait for the current 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
