EUR/JPY Technical Analysis: Topping Pattern Playing Out
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- EUR/JPY Technical Strategy: Flat
- Support: 146.08, 143.79, 141.95
- Resistance:147.48, 149.78, 151.36
The Euro is reversed lower against the Japanese Yen as expected after prices put in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci expansion at 146.08 exposes the 38.2% level at 143.79. Alternatively, a reversal above the 14.6% Fib at 147.48 opens the door for a challenge of the December 5 high at 149.78.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.