EUR/JPY Technical Analysis: Euro Drops Most in 17 Months
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- EUR/JPY Technical Strategy: Flat
- Support: 145.59, 143.40, 141.63
- Resistance: 146.94, 149.13, 150.57
The Euro moved lower against the Japanese Yen as expected after prices produced a Shooting Star candlestick, dropping the most in 17 months. A daily close below the 23.6% Fibonacci retracement at 145.59 exposes the 38.2% level at 143.40. Alternatively, a reversal above the 14.6% Fib at 146.94 opens the door for a challenge of the November 20 high at 149.13.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com