EUR/JPY Technical Analysis: Short Trade Setup Established
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- EUR/JPY Technical Strategy: Pending Short at 135.25
- Support: 134.97, 133.81, 132.04
- Resistance:135.50, 137.64, 139.95
The Euro appears to have resumed its decline against the Japanese Yen as expected having overturned rising trend support set from late January. A daily close below the 14.6% Fibonacci expansion at 133.81 exposes the 23.6% level at 132.04. Alternatively, a reversal above trend line support-turned-resistance at 135.50 opens the door for a test of the 136.68-137.64 area marked by the February 12 high and the 38.2% Fib retracement.
Prices are too close to support to justify entering short from a risk/reward perspective and we will set a pending order to sell the pair at 135.25. If triggered, the trade will initially target 133.8 and carry a stop-loss to be activated on a daily close above 136.68.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com