EUR/JPY Technical Analysis: Channel Support Holds Up
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- EUR/JPY Technical Strategy: Flat
- Support: 138.21, 137.91, 137.65
- Resistance: 139.10, 139.33, 140.00
The Euro is inching upward against the Japanese Yenas expected after prices produced a Bullish Engulfing candlestick pattern. A daily close above resistance at 139.10, the 23.6% Fibonacci retracement, initially exposes the top of a rising channel set from mid-June, now at 139.33. Alternatively, a drop through channel support – now at 138.21 – targets swing lows in the 137.65-91 area.
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.