EUR/JPY Technical Analysis: Standstill Below 132.00 Persists
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- EUR/JPY Technical Strategy: Flat
- Support: 129.55, 128.00, 126.85
- Resistance:131.79, 132.94, 134.37
The Euro is in consolidation mode after prices broke resistance capping the upside since early December 2014 against the Japanese Yen. A daily close above the 50% Fibonacci retracement at 131.79 exposes the 61.8% level at 132.94. Alternatively, reversal below the 129.51-130.63 area (trend line resistance-turned-support, January 26 low, 38.2% retracement) clears the way for a challenge of the 38.2% Fib expansion at 128.00.
Our long-term outlook envisions Euro weakness. With that in mind, we will treat any on-coming upswing as corrective and look to enter short once signs of a renewed turn lower emerge. In the meantime, we will remain on the sidelines.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com