EUR/JPY Technical Analysis: Waiting for Direction Cues
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- EUR/JPY Technical Strategy: Flat
- Support: 137.51, 135.33, 133.56
- Resistance:140.15, 141.50, 142.69
The Euro continues to wait for directional guidance against the Japanese Yen as prices tread water above the 137.00 figure. 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 move above the 14.6% Fib at 140.15 opens the door for a challenge of the 23.6% expansion at 141.50.
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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--- 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.