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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 135.36, 134.38, 132.80
- Resistance:137.26, 138.43, 139.60
The Euro turned lower against the Japanese Yen as expected after negative RSI divergence hinted at ebbing upside momentum. A daily close below the 14.6% Fibonacci retracement at 135.36 exposes the 23.6% level at 134.38. Alternatively, reversal above the 38.2% Fib expansion at 137.26 clears the way for a test of the 50% threshold at 138.43.
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
