EUR/JPY Technical Analysis: Recovery Meets Resistance
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- EUR/JPY Technical Strategy: Flat
- Support: 137.25, 136.11-30, 135.60
- Resistance:137.80, 138.69, 139.24-41
The Euro corrected upward against the Japanese Yen as expected after prices put in a bullish Morning Star candlestick pattern. A daily close above resistance at 137.80, the 23.6% Fibonacci retracement, initially exposes the 38.2% level at 138.69. Alternatively, a turn below the 14.6% Fib at 137.25clears the way for a challenge of the 136.11-30 area, intersection of a falling channel floor and the 61.8% Fib expansion.
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.