EUR/JPY Technical Analysis: Short Position Now in Play
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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 carving out a top against the Japanese Yen marked by the formation of a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 141.83, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 140.36. Alternatively, a reversal above the 161.8% Fib expansion at 143.32 clears the way for a test of the 176.4% threshold at 143.89.
Our order to sell EURJPY at 143.02 has been triggered. We are initially targeting 141.83, with a stop-loss set to activate on a daily close above 144.21. Half of the trade will be booked and the stop-loss moved to breakeven (143.02) once the first objective is met.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com