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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 134.38, 132.80, 131.52
- Resistance:135.36, 136.95, 138.41
The Euro turned lower against the Japanese Yen as expected after negative RSI divergence hinted at ebbing upside momentum. A daily close below the 23.6% Fibonacci retracementat 134.38 exposes the 38.2% level at 132.80. Alternatively, move above the 14.6% Fib at 137.26 clears the way for a test of the May 18 high at 136.95.
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
