EUR/JPY Technical Analysis: Euro Dips to 3-Week Low
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- EUR/JPY Technical Strategy: Flat
- Support: 138.12, 137.17, 136.22
- Resistance: 139.30, 140.03, 141.21
The Euro resumed its descent against the Japanese Yen, with prices touching the weakest level in three weeks. A daily close below the 38.2% Fibonacci expansion at 138.12 exposes the 137.17-43 area marked by a formerly broken channel top and the 50% level. Alternatively, a reversal above the 23.6% Fib at 139.30 clears the way for a test of the 14.6% expansion at 140.03.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.