EUR/JPY Technical Analysis: Euro Bounce vs. Yen Flounders
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- EUR/JPY Technical Strategy: Flat
- Support: 136.58, 136.22, 135.94
- Resistance:137.80, 138.69, 139.41
The Euro turned lower anew after a brief recovery against the Japanese Yen, tagging the lowest level in six months. A daily close below support at 136.58, the 23.6% Fibonacci expansion, initially exposes the February 4 low at 136.22. Alternatively, a turn above the 14.6% Fib at 137.13clears the way for a challenge of support-turned-resistance at 137.65.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests entering long is premature. With that in mind, we will remain flat for now.
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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.