EUR/JPY Technical Analysis: Sideways Trade Continues
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- EUR/JPY Technical Strategy: Flat
- Support: 138.86, 136.95, 135.33
- Resistance:141.20, 142.55, 144.73
The Euro is treading water against the Japanese Yen having advanced to a five-month high above the 141.00 figure. 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 14.6% Fib expansion at 141.20 clears the way for a test of the 23.6% threshold at 142.55.
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.