EUR/JPY Technical Analysis: 2-Month Down Trend at Risk
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- EUR/JPY Technical Strategy: Flat
- Support: 128.58, 127.63, 126.08
- Resistance:129.27, 130.13, 131.38
The Euro resumed its recovery against the Japanese Yen, with prices moving to challenge the bounds of the down trend established from mid-February. Near-term trend line resistance is at 129.27, with a break above that on a daily closing basis exposing the 38.2% Fibonacci retracement at 130.13. Alternatively, turn below the 23.6% level at 128.58 opens the door for a challenge of the 14.6% Fib at 127.63.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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