EUR/JPY Technical Analysis: Still Holding Short Position
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Short at 137.12
- Support: 136.09-22, 134.91, 133.96
- Resistance:138.02-05, 138.80, 139.75
The Euro may be readying to turn lower against the Japanese Yen anew after putting in a Shooting Star candlestick near the 138.00 figure. Near-term support is in the 36.09-22 area, marked by the February 4 low and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the intersection of a falling channel floor and the 38.2% level at 134.91. Alternatively, a move above resistance in the 138.02-05 zone (August 1 high, channel top) clears the way for a test of the 38.2% Fibonacci retracement at 138.80.
We sold EURJPY at 137.12, initially targeting 136.22 with a stop-loss to be activated on a daily close above 138.02. The trade narrowly survived being stopped out yesterday and will remain in the position, looking for downward resumption ahead.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.