EUR/JPY Technical Analysis: 3-Week Down Trend Broken?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 137.35, 136.55, 135.75
- Resistance: 137.85, 138.65, 139.30
The Euro broke channel resistance guiding its down trend against the Japanese Yen, completing a bullish Piercing Line candlestick pattern. The setup hints at further gains ahead, with a daily close above the 23.6% Fibonacci expansion at 137.85 exposing the 38.2% level at 138.65. Alternatively, a reversal back below the intersection of the 14.6% Fib and the channel top at 137.35 opens the door for a challenge of the October 7 low at 136.55.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com