EUR/JPY Technical Analysis: Sideways Trading Continues
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- EUR/JPY Technical Strategy: Flat
- Support: 145.59, 143.40, 141.63
- Resistance: 147.76, 149.11, 151.30
The Euro has transitioned into digestion mode having declined as expected against the Japanese Yen following the appearance of a Shooting Star candlestick. A daily close above the 14.6% Fibonacci expansionat 147.76 exposes the 23.6% level at 149.11. Alternatively, a reversal below the 23.6% Fib retracement at 145.59 opens the door for a challenge of the 38.2% threshold at 143.40.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.