EUR/JPY Technical Analysis: Channel Resistance in Focus
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- EUR/JPY Technical Strategy: Flat
- Support: 135.80, 135.16, 134.13
- Resistance: 136.06, 136.84, 137.67
The Euro may be carving out a bottom against the Japanese Yen after putting in a bullish Piercing Line candlestick pattern. A daily close above falling channel top resistance at 136.06 exposes the 38.2% Fibonacci retracement at 136.84. Alternatively, a turn below the 23.6% level at 135.80 opens the door for a challenge of the 14.6% Fib at 135.16.
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.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com