EUR/JPY Technical Analysis: Range-Bound Below 138.00
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- EUR/JPY Technical Strategy: Flat
- Support: 136.83, 136.15, 135.60
- Resistance: 137.65, 138.33, 138.88
The Euro is jostling in a volatile range below the 138.00 figure against the Japanese Yen as prices await a clear directional catalyst. Near-term resistance is at 137.65, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 138.33. Alternatively, a turn below the 23.6% Fib expansion at 136.83 clears the way for a test of the 38.2% threshold at 136.15.
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.