News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
EUR/JPY Technical Analysis: Opting to Pass on Short Position

EUR/JPY Technical Analysis: Opting to Pass on Short Position

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 136.22, 135.72, 135.04
  • Resistance: 137.17, 137.57, 138.12

The Euro slid to the lowest level in a month against the Japanese Yen, marking a breach of the 137.00 figure. Near-term support is at 136.22, marked by the 61.8% Fibonacci expansion and a falling channel bottom. A break below that on a daily closing basis exposes the August 8 low at 135.72. Alternatively, a turn back above the 50% level at 137.17 clears the way for a test the channel top at 137.57.

Entering short is a very tempting proposition from the technical and risk/reward perspectives. However, the pair’s link to risk appetite trends warns against taking directional bets as minutes from September’s FOMC meeting threaten to disrupt sentiment trendsin the hours. Indeed, the correlation between EURJPY and the MSCI World Stock Index is now 0.52 on 20-day percent change studies, the highest since late July. As such, we will begrudgingly remain flat.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/JPY Technical Analysis: Opting to Pass on Short Position

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.