EUR/JPY Technical Analysis: Decline Below 138.00 Ahead?

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Talking Points:

• EUR/JPY Technical Strategy: Flat
• Support: 137.51, 135.33, 133.56
• Resistance:138.86, 141.04, 142.51

The Euro broke narrowly lower against the Japanese Yen, with positioning hinting a move below the 138.00 figure is ahead. Near-term support is at 137.51, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 135.33. Alternatively, a turn back above the 14.6% Fib at 138.86 opens the door for a challenge of the June 4 high at 141.04.

The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com