EUR/JPY Technical Analysis: Euro Rallies to 5 Month High
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- EUR/JPY Technical Strategy: Flat
- Support: 137.24, 135.65, 134.68
- Resistance:138.52, 139.80, 141.39
The Euro accelerated upward against the Japanese Yen, rising to the strongest level in five months. Near-term resistance is at 138.52, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 139.80. Alternatively, a turn below the 38.2% Fib at 137.24 opens the door for a challenge of the 23.6% expansion at 135.65.
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.
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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.