EUR/JPY Technical Analysis: Eyeing Support Below 139.00
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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 is edging cautiously lower against the Japanese Yen after putting in a Shooting Star candlestick. A daily close below the 14.6% Fibonacci retracementat 138.86 exposes the 136.95-137.51 area (May 18 high, 23.6% level). Alternatively, a reversal above the 76.4% Fib expansion at 141.39 clears the way for a test of the 100% threshold at 143.95.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.