EUR/JPY Technical Analysis: Candle Hints at Downswing
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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 on the verge of resuming its down trend against the Japanese Yen after prices produced a Shooting Star candlestick at range resistance. Near-term support is at 128.00, the 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.
A Shooting Star is not a sufficiently significant signal to enter short, pointing to indecision rather than bearish reversal. With that in mind, we will remain flat for now, waiting for confirmation of a top in place to trigger a position.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com