EUR/JPY Technical Analysis: 3-Month Low Prompts Bounce
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- EUR/JPY Technical Strategy: Flat
- Support: 134.13, 132.40, 130.20
- Resistance:136.89, 138.25, 140.45
The Euro is attempting to launch a rebound against the Japanese Yen after producing the largest daily decline in nearly two years. A daily close above the 14.6% Fibonacci retracement at 136.89 exposes the 23.6% level at 138.25. Alternatively, a reversal below the 134.13-60 area marked by the October 16 low and the 76.4% Fib expansion opens the door for a test of the 100% threshold at 132.40.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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.