To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 134.38, 132.80, 131.52
- Resistance:135.36, 136.95, 138.41
The Euro declined against the Japanese Yen as expected following the appearance of negative RSI divergence. Near-term support is at 134.38, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 132.80. Alternatively, turn above the 14.6% Fib at 137.26 opens the door for a challenge of the May 18 high at 136.95.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
