EUR/JPY Technical Analysis: Treading Water Above 137.00
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- EUR/JPY Technical Strategy: Flat
- Support: 137.17, 136.22, 135.04
- Resistance: 138.12, 139.30, 140.03
The Euro has stalled at key chart supportagainst the Japanese Yen, with prices awaiting new direction cues. Near-term support is at 137.17, marked by a formerly broken channel top and the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 136.22. Alternatively, a reversal above the 38.2% Fib at 138.12 clears the way for a test of the 23.6% expansion at 139.30.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.