EUR/JPY Technical Analysis: Support Found Near 129.00
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- EUR/JPY Technical Strategy: Flat
- Support:128.96, 128.00, 126.85
- Resistance:130.63, 131.79, 132.94
The Euro corrected downward against the Japanese Yen after finding resistance below the 132.00 figure. A daily close below trend line resistance-turned-support at 128.96 exposes the 38.2% Fibonacci expansion at 128.00. Alternatively, reversal above the 38.2% Fib retracement at 130.63 clears the way for a challenge of the 50% threshold at 131.79.
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