EUR/JPY Technical Analysis: October Low Under Pressure

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Talking Points:

• EUR/JPY Technical Strategy: Flat
• Support: 134.07, 131.87, 130.09
• Resistance:135.43, 137.63, 139.21

The Euro stalled after reclaiming a foothold above the 137.00 figure against the Japanese Yen, snapping three days of consecutive gains. A daily close below the 134.07-13 area marked by the October 16 low and the 23.6% Fibonacci expansion exposes the 38.2% level at 131.87.Alternatively, a reversal above the 14.6% Fib at 135.43 opens the door for a test of the January 20 high at 137.63.

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