EUR/JPY Technical Analysis: Drifting Sideways Below 148.00
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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 stalled having fallen as expected against the Japanese Yen after putting in a Shooting Star candlestick. Near-term resistance is at 147.76, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 149.11. Alternatively, a turn below the 23.6% Fib retracement at 145.59 clears the way for a test of the 38.2% threshold at 143.40.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- 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.