EUR/JPY Technical Analysis: A Top in Place Below 150.00?
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- EUR/JPY Technical Strategy: Flat
- Support: 147.76, 145.59, 143.79
- Resistance:149.11, 151.30, 153.07
The Euro may be carving out a top against Japanese Yen signaled by the appearance of a Dark Cloud Cover candlestick pattern and negative RSI divergence. A daily close below the 14.6% Fibonacci expansion at 147.76 exposes the November 24 low at 145.57. Alternatively, a reversal above the 23.6% level at 149.11 opens the door for a challenge of the 38.2% Fib at 151.30.
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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com