EUR/JPY Technical Analysis: Short Trade Hits First Target
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- EUR/JPY Technical Strategy: Short at 137.12
- Support: 136.09-22, 134.91, 133.96
- Resistance:138.02, 138.80, 139.75
The Euro turned sharply lower against the Japanese as expected, with prices sinking to the lowest level in a month. A daily close below the 136.09-22 area marked by the February 4 low and the 23.6% Fibonacci expansion exposes the intersection of a falling channel floor and the 38.2% level at 134.91. Alternatively, a reversal above 138.02 (August 1 high, channel top) opens the door for a challenge of the 38.2% Fibonacci retracement at 138.80.
We entered short EURJPY at 137.12. The trade narrowly survived being stopped out and has now met our initial objective of 136.22. We have now booked profit on half of the position. The remainder will continue to be active to capture any further weakness with a stop-loss adjusted to breakeven.
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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.