EUR/JPY Technical Analysis: Short Trade Setup Established
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- EUR/JPY Technical Strategy: Flat
- Support: 141.83, 140.36, 139.17
- Resistance: 143.32, 143.87, 144.80
The Euro may be readying to turn lower against the Japanese Yen after prices put in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 141.83 exposes the 38.2% level at 140.36. Alternatively, a turn above the 161.8% Fib expansion at 143.32 opens the door for a challenge of the 176.4% threshold at 143.89.
Risk/reward considerations do not allow for a short position at current levels and we will set an entry order to short EURJPY at 143.02. If triggered, the position will initially target 141.83 and have a stop-loss activated on a daily close above 144.21.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com