EUR/JPY Technical Analysis: Trend Line Caps Recovery
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 128.58, 127.63, 126.08
- Resistance:129.12, 130.13, 131.38
The Euro stalled against the Japanese Yen after prices hit resistance marked by a falling trend line capping gains since mid-February. A daily close above this barrier – now at 129.12 – exposes the 38.2% Fibonacci retracement at 130.13. Alternatively, turn below the 23.6% level at 128.58 clears the way for a test of the 14.6% Fib at 127.63.
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 an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com