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- EUR/JPY Technical Strategy: Flat
- Support: 136.78, 136.57, 136.22
- Resistance: 137.04, 137.47, 137.81
The Euro may be preparing to launch a recovery against the Japanese Yen after prices produced a bullish Morning Star candlestick pattern. Near-term resistance is at 137.04, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 137.47. Alternatively, a reversal below the 14.6% level at 136.78 aims for the July 22 close at 136.57, followed by the February 4 low at 136.22.
Prices are wedged too closely between near-term support and resistance levels to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable 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