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EUR/JPY Technical Analysis: Euro in Consolidation Mode

EUR/JPY Technical Analysis: Euro in Consolidation Mode

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 137.03, 136.22, 135.04
  • Resistance: 138.12, 139.30, 140.03

The Euro is in consolidation mode after sliding to a one-month low below 137.00 against the Japanese Yen. A daily close below the intersection of channel top resistance-turned-support and the 50% Fibonacci expansion in the 137.03-17 area exposes the 61.8% level at 136.22. Alternatively, a reversal above the 38.2% Fib at 138.12 opens the door for a challenge of the 23.6% expansion at 139.30.

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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EUR/JPY Technical Analysis: Euro in Consolidation Mode

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.

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