EUR/JPY Technical Analysis – Cautious Recovery Continues
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- EUR/JPY Technical Strategy: Flat
- Support: 138.36, 137.91, 137.65
- Resistance: 138.79, 139.27, 139.49
The Euro continues to edge upward against the Japanese Yen as expected after putting in a Bullish Engulfing candlestick pattern. Prices corrected lower after finding resistance above the 139.00 figure, moving to retest the 14.6% Fibonacci retracement at 138.36. A daily close below this barrier aims for swing lows in the 137.65-91 area. Alternatively, a move back above the 23.6% level at 138.79 aims for the July 3 high at 139.27, followed by the 38.2% Fib at 139.49.
We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.
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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.