EUR/JPY Technical Analysis: Two-Month Support at Risk
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 135.60, 135.05, 134.37
- Resistance: 136.15, 136.83, 137.93
The Euro is working on the third consecutive daily drop against the Japanese Yen, with prices probing below a two-month-old support shelf. A daily close below the 135.60-72 are marked by the August 8 low and the 50% Fibonacci expansion exposes the 61.8% level at 135.05. Alternatively, a reversal above the 38.2% Fib at 136.15 opens the door for a challenge of the 23.6% expansion at 136.83.
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.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.