EUR/JPY Technical Analysis: Upside Push Slows Sub-143.00
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- EUR/JPY Technical Strategy: Flat
- Support: 141.21, 139.54, 138.51
- Resistance: 142.88, 143.92, 144.75
The Euro slowed its advance against the Japanese Yen after hitting an eight-month high following last week’s unexpected BOJ stimulus expansion. Near-term resistance is at 142.88, 123.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 138.2% level at 143.92. Alternatively, a reversal below resistance-turned-support at 141.21, the September 19 high, clears the way for a test of the 76.4% Fib retracement at 139.54.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com