EUR/JPY Technical Analysis: Euro Stair-Stepping Lower
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- EUR/JPY Technical Strategy: Flat
- Support: 128.00, 126.85, 125.69
- Resistance:130.63, 131.79, 132.94
The Euro continues to retrace downward having recoiled from resistance below the 132.00 figureagainst the Japanese Yen. Near-term support is at 128.00, 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 126.85. Alternatively, turn above the 38.2% Fib retracement at 130.63 opens the door for a test of the 50% threshold at 131.79.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.