EUR/JPY Technical Analysis: Rally Stalls Below May High
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- EUR/JPY Technical Strategy: Flat
- Support: 135.65, 134.68, 132.80
- Resistance:137.24, 138.52, 139.80
The Euro paused to consolidate gains below May’s swing high beneath the 137.00 figure against the Japanese Yen. A daily close above the 136.95-137.24 area (May 18 high, 38.2% Fibonacci expansion) exposes the 50% level at 138.52. Alternatively, a reversal below the 23.6% Fib at 135.65 clears the way for a test of the 14.6% expansion at 134.68.
A long trade seems tempting from a purely technical perspective but we will tactically stand aside until Greece-inspired volatility risk passes. If Athens fails to make its IMF payment by Friday, bullish technical cues are likely to unravel. We will wait for the coast to clear before committing to a directional bias.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.