EUR/JPY Technical Analysis: On Pace to Pierce Range Floor
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- EUR/JPY Technical Strategy: Flat
- Support: 135.05, 134.37, 133.27
- Resistance: 135.72, 136.15, 136.83
The Euro is poised to confirm a major breakdown against the Japanese Yen as prices pierce the floor of a two-month trading range. A daily close below the 135.60-72 area marked by the August 8 low and the 50% Fibonacci expansion exposes the 61.8% level at 135.05. Alternatively, a reversal back above 135.72 opens the door for a challenge of the 38.2% Fib at 136.15.
Prices are wedged too closely between near-term support and resistance levels to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines, waiting for a more compelling opportunity to emerge.
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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.