EUR/JPY Technical Analysis: Euro Drops Most in 17 Months
To receive Ilya's analysis directly via email, please SIGN UP HERE
- 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.