EUR/JPY Technical Analysis: Holding in Familiar Range
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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 launched a recovery against the Japanese Yen but prices failed to overcome now-familiar range boundaries. A daily close below the 38.2% Fibonacci expansion at 128.00 exposes the 50% level at 126.85. 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 long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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