EUR/JPY Technical Analysis: Euro Downturn Hinted Ahead
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- EUR/JPY Technical Strategy: Flat
- Support: 138.86, 136.95, 135.33
- Resistance:141.39, 143.95, 146.52
The Euro put in a Shooting Star candlestick, hinting a turn downward against the Japanese Yen may be ahead. Near-term support is at 138.86, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 136.95-137.51 area (May 18 high, 23.6% level). Alternatively, a turn above the 76.4% Fib expansion at 141.39 opens the door for a challenge of the 100% threshold at 143.95.
A Shooting Star candle is indicative of indecision and does not amount to a sufficient-enough reversal signal in its own right without further confirmation. With that in mind, we will remain on the sidelines for now and wait for a more actionable setup 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.