EUR/JPY Technical Analysis: Channel Top Resistance Exposed
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- EUR/JPY Technical Strategy: Flat
- Support: 137.62, 136.89, 136.22
- Resistance:138.57-80, 139.75, 140.70
The Euro advanced against the Japanese Yen as expected after positive RSI divergence was spotted on a test of February’s swing bottom. A daily close above the 138.57-80 area marked by a falling channel top and the 38.2% Fibonacci retracement exposes the 50% level at 139.75. Alternatively, a turn below the 23.6% Fib at 137.62 clears the way for a test of the 14.6% expansion at 136.89.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.