EUR/JPY Technical Analysis: Digesting Gains Near 137.00
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- EUR/JPY Technical Strategy: Flat
- Support: 136.83, 135.80, 135.16
- Resistance: 137.67, 138.51, 139.54
The Euro is mired in consolidation mode after initiating a recovery against the Japanese Yen, as expected. Near-term resistance is at 137.67, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 138.51. Alternatively, a turn back below the 38.2% Fib at 136.83 clears the way for a test of the 23.6% retracement at 135.80.
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