EUR/JPY Technical Analysis: Making Progress on Short Trade
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- EUR/JPY Technical Strategy: Short at 137.12
- Support: 136.09-22, 135.23, 134.91
- Resistance:137.39, 138.02, 138.35
The Euro declined against the Japanese Yen as expected following the appearance of a Bearish Engulfing candlestick pattern. Near-term support is in the 136.09-22 area, marked by the 23.6%Fibonacci expansion and the February 4 low, with a break below that on a daily closing basis exposing a falling channel floor at 135.23. Alternatively, a reversal above rising trend line support-turned-resistance set from early August at 137.39 clears the way for a test of the August 1 high at 138.00.
We entered short EURJPY at 137.12, initially targeting 136.22. A stop-loss will be triggered on a daily close above 138.02. We will take profit on half of the position and move to stop-loss breakeven once the first objective is reached.
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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.