EUR/JPY Technical Analysis: Pressuring Range Resistance
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- EUR/JPY Technical Strategy: Flat
- Support: 132.48, 130.71, 127.84
- Resistance:135.35, 137.64, 139.95
The Euro is stalling after attempting to rise against the Japanese Yen as expected following the appearance of a bullish Morning Star candlestick pattern. Near-term resistance is in the 134.77-135.35 area, marked by the 23.6% Fibonacci retracement and the February 4 high, with a break above that on a daily closing basis exposing the 38.2% level at 137.64. Alternatively, a turn below the 14.6% Fib expansion at 138.48 clears the way for a challenge of the 23.6% threshold at 130.71.
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