EUR/JPY Technical Analysis: Euro Drops Most in Six Weeks
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- EUR/JPY Technical Strategy: Flat
- Support: 142.38, 141.24, 140.54
- Resistance:143.52, 144.23, 144.80
The Euro fell for a fourth consecutive day against the Japanese Yen, issuing the largest decline in six weeks. A daily close below the 100% Fibonacci expansion at 142.38 exposes the 123.6% level at 141.24. Alternatively, a reversal above the 76.4% Fib at 143.52 opens the door for a test of the 61.8% expansion at 144.23.
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.