EUR/JPY Technical Analysis: Bullish Momentum Fading?
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- EUR/JPY Technical Strategy: Flat
- Support: 142.19, 140.65, 139.40
- Resistance: 144.46, 145.93, 147.12
The Euro may be preparing to turn downward against the Japanese Yen as negative RSI divergence warns of ebbing upside momentum. A daily close below the 23.6% Fibonacci retracementat 142.19 exposes the 38.2% level at 140.65. Alternatively, a turn above the 23.6% Fib expansion at 144.46 opens the door for a challenge of the 38.2% threshold at 145.93.
RSI divergence is not a sufficient-enough indication of reversal by itself without further confirmation. With that in mind, we will remain on the sidelines for the time being until a more actionable opportunity to establish a short position presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.