EUR/JPY Technical Analysis: Three-Month Trend Threatened
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- EUR/JPY Technical Strategy: Short at 135.25
- Support: 128.00, 126.85, 125.69
- Resistance:130.63, 131.79, 132.94
The Euro continues to threaten to overturn its three-month down trend against the Japanese Yen. Near-term resistance is at 130.63 (38.2% Fibonacci retracement, January 26 low, trend line), with a break above that on a daily closing basis exposing the 50% level at 131.79. Alternatively, move below the 38.2% Fib expansion at 128.00 clears the way of a challenge of the 50% threshold at 126.85.
We entered short EURJPY at 135.25 and subsequently booked profits on half of the position. The rest of the trade remains open to capture any further downside, though we may exit on a close above the trend line. The stop-loss has been adjusted to the breakeven level (135.25).
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.