EUR/JPY Technical Analysis: Six-Month Down Trend Broken
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- EUR/JPY Technical Strategy: Flat
- Support: 138.02, 136.38, 135.70
- Resistance: 138.79, 139.74, 140.69
The Euro has seemingly overturned a six-month down trend against the Japanese Yen after clearing a key channel top. Near-term resistance is now at 138.79, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 139.74. Alternatively, a turn below the intersection of the former range and channel top resistance at 138.02 clears the way for a test of a horizontal pivot at 136.38.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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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.