EUR/JPY Technical Analysis: 128.00 Figure in the Crosshairs
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- EUR/JPY Technical Strategy: Flat
- Support: 128.00, 126.85, 125.69
- Resistance:129.32, 131.05, 132.51
The Euro turned downward against the Japanese Yen as expected following the appearance of a Shooting Star candlestick. 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 trend line support-turned-resistance at 129.32 opens the door for a challenge of range top resistance at 131.05.
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