EUR/JPY Technical Analysis: Carving Out a Double Bottom?
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- EUR/JPY Technical Strategy: Flat
- Support: 136.22, 135.85, 135.18
- Resistance:137.62, 138.80, 139.75
The Euro rebounded against the Japanese Yen as expected after showing positive RSI divergence on a test of February’s swing bottom. Near-term resistance is at 137.62, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the intersection of the 38.2% level and a falling channel top at 138.80. Alternatively, a reversal below in the 136.22-27 area, marked by the February 4 low and the 23.6% Fib expansion, clears the way for a test of the channel floor at 135.85.
The ECB looks to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major counterparts. With that in mind, we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com