EUR/JPY Technical Analysis: Yen Gains Most in Five Days
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- EUR/JPY Technical Strategy: Flat
- Support: 138.16, 137.06, 135.96
- Resistance:139.52, 140.36, 141.72
The Euro remains under pressure against the Japanese Yen, with prices yielding the largest decline in five days. A daily close below the 38.2% Fibonacci expansionat 138.16 exposes the 50% level at 137.06. Alternatively, a reversal above the 23.6% Fib at 138.52 opens the door for a test of the 14.6% expansion at 140.36.
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.