EUR/JPY Technical Analysis: Selloff Extends for Fifth Day
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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 continues to edge lower against the Japanese Yen, with prices extending their decline for a fifth consecutive day. Near-term support is at 138.16, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 137.06. Alternatively, a turn above the 23.6% Fib at 138.52 clears the way for a challenge of the 14.6% expansion at 140.36.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.