EUR/JPY Technical Analysis: Rebound Hinted Above 135.00
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- EUR/JPY Technical Strategy: Flat
- Support: 135.20, 134.37, 133.70
- Resistance: 136.48, 137.39, 138.12
The Euro may be readying to turn higher against the Japanese Yen after forming a bullish Piercing Line candlestick pattern. Near-term resistance is at 136.48, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 137.39. Alternatively, a reversal below the 23.6% Fib expansion at 135.20 clears the way for a test of the 38.2% threshold at 134.37.
While entering long seems tempting, we will tactically not to pursue the trade absent confirmation of reversal on a break out of the down trend carved out from mid-September. In the meantime, we will remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com