EUR/JPY Technical Analysis: Opting to Pass on Long Trade
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- EUR/JPY Technical Strategy: Flat
- Support: 134.77, 132.48, 130.71
- Resistance: 137.64, 139.95, 142.27
The Euro is rising against the Japanese Yen as having shown a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fib Fibonacci retracement at 137.64 exposes the 50% level at 139.95. Alternatively, a reversal below the 134.77-135.02 area marked by the October 14 low and the 23.6% Fib opens the door for a test of the 14.6% threshold at 133.00.
While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside.The correlation between EURJPY and the S&P 500 stock index warns the pair may sink if risk aversion breaks out following a Greece-focused meeting of Eurozone finance ministers today. With that in mind, we will stand aside.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com