EUR/JPY Technical Analysis: Waiting to Validate Turn Signal
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- EUR/JPY Technical Strategy: Flat
- Support: 136.30, 135.60, 134.46
- Resistance: 137.25, 137.80, 138.69
The Euro may be gearing up for a rebound against the Japanese Yen after prices produced a bullish Morning Star candlestick pattern. A daily close above resistance at 137.25, the 14.6% Fibonacci retracement, initially exposes the 23.6% level at 137.80. Alternatively, a turn below the intersection of a falling channel floor and the 61.8% Fib expansion at 136.30 clears the way for a challenge of the 76.4% threshold at 135.60.
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.