EUR/JPY Technical Analysis: Euro Drops to 11-Week Low

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Talking Points:

• EUR/JPY Technical Strategy: Flat
• Support: 139.52, 138.16, 137.06
• Resistance:140.36, 141.72, 142.97

The Euro has dropped to the lowest level in 11 weeks against the Japanese Yen, establishing a foothold below the 140.00 figure. Near-term support is at 139.52, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 138.16. Alternatively, a turn above the 14.6% Fib at 140.36 clears the way for a challenge of the January 8 high at 141.72.

Prices are wedged too closely between immediate support and resistance barriers to justify entering a trade on the long or short side from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.

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Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com