EUR/JPY Technical Analysis: Pullback Meets Channel Floor
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- EUR/JPY Technical Strategy: Flat
- Support: 138.18, 137.91, 137.65
- Resistance: 139.10, 139.29, 140.00
The Euro is edging higher as expected against the Japanese Yen after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is now at 139.10, the 23.6% Fibonacci retracement. A daily close above this barrier targets the top of a rising channel set from mid-June, now at 139.29. Alternatively, a drop through channel support – now at 138.18 – targets swing lows in the 137.65-91 area.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major 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.