EUR/JPY Technical Analysis: Trying to Clear Path Downward
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- EUR/JPY Technical Strategy: Flat
- Support: 135.94, 133.10, 131.07
- Resistance:137.97, 139.47, 141.23
The Euro continued to edge lower against the Japanese Yen after prices filled in the sharp price gap formed at the weekly trading open. Near-term support is at 135.94, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 133.10-75 area (support shelf, June 29 low). Alternatively, a move above the 137.28-97 zone (23.6% level, support-turned-resistance) opens the door for a challenge of the 38.2% Fib at 139.47.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.