EUR/JPY Technical Analysis: Forming a Top Near 138.00?
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- EUR/JPY Technical Strategy: Flat
- Support: 136.98, 136.35, 135.31
- Resistance: 137.67, 138.51, 139.54
The Euro may be readying to turn lower anew against the Japanese Yen after prices put in a Shooting Star candlestick. Near-term support is at 136.98, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 136.35. Alternatively, a push above the 50% Fib retracement at 137.67 clears the way for a test of the 61.8% threshold at 138.51.
A Shooting Star candle is indicative of indecision and does not amount to an actionable trade signal by itself, hinting that taking up the short side is premature for now. On the other hand, risk/reward considerations warn against entering long with prices sitting just below resistance. 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