EUR/JPY Technical Analysis: Treading Water Above 133.00
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- EUR/JPY Technical Strategy: Flat
- Support: 134.97, 133.81, 132.04
- Resistance:137.64, 139.95, 142.27
The Euro may be preparing to resume its down trend against the Japanese Yen having produced a bearish Evening Star candle pattern. Near-term trend line support is at 134.97, with a break below that on a daily closing basis exposing the 14.6% Fibonacci expansion at 133.81. Alternatively, a turn above the 38.2% Fib retracement at 137.64 clears the way for a challenge of the 50% threshold at 139.95
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com