EUR/JPY Technical Analysis: Euro Weakness Hinted Ahead
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- EUR/JPY Technical Strategy: Flat
- Support: 144.46, 143.55, 142.08
- Resistance: 145.93, 147.12, 148.31
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 expansion at 144.46 exposes the 14.6% level at 143.55. Alternatively, a turn above the 38.2% Fib at 145.93 opens the door for a challenge of the 50% expansion at 147.12.
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