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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 140.54, 139.97, 139.40
- Resistance:141.24, 142.38, 143.52
The Euro slumped to levels unseen since early November against the Japanese Yen, with sellers poised to clear a path below the 140.00 mark. Near-term support is at 140.54, the 138.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 150% level at 139.97. Alternatively, a turn above the 123.6% Fib at 141.24 clears the way for a challenge of the 100% expansion at 142.38.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
