EUR/JPY Technical Analysis: Euro Renews Rally vs. Yen
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- EUR/JPY Technical Strategy: Flat
- Support: 139.28, 138.96, 138.46
- Resistance: 139.79, 140.20, 140.61
The Euro resumed its climb against the Japanese Yen, advancing to the highest level in over three months. Near-term resistance is at 139.79, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 140.20. Alternatively, a reversal below the 23.6% Fib at 139.28 clears the way for a test of the 14.6% expansion at 138.96.
While entering long seems initially tempting, negative RSI divergence hints at ebbing bullish momentum and warns against chasing prices higher. Furthermore, buying the Euro seems disadvantageous considering firmly dovish posture at the ECB. 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.