EUR/JPY Technical Analysis: March Swing Bottom in Play
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- EUR/JPY Technical Strategy: Flat
- Support: 126.85, 125.69, 124.27
- Resistance:128.00, 129.54, 131.05
The Euro turned downward against the Japanese Yen as expected following the appearance of a Shooting Star candlestick. Near-term support is at 126.85, the 50% Fibonacci expansion, with a break below that exposing the 61.8% level at 125.69. Alternatively, turn above the 38.2% Fib at 128.00 opens the door for a challenge of trend line support-turned-resistance at 129.54.
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