EUR/JPY Technical Analysis: Euro Drops Most Since 2013
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- EUR/JPY Technical Strategy: Flat
- Support: 134.13, 132.40, 130.20
- Resistance:135.96, 137.06, 138.17
The Euro remains under pressure against the Japanese Yen, with prices yielding the largest decline in close to two years. A daily close below the 134.46-60 area marked by the October 16 low and the 76.4% Fibonacci expansionexposes the 100% level at 132.40. Alternatively, a reversal above the 61.8% Fib at 135.96 opens the door for a test of the 50% expansion at 137.06.
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