EUR/JPY Technical Analysis: Digesting Losses Near 136.00
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 135.94, 133.10, 131.07
- Resistance:137.97, 139.47, 141.23
The Euro paused to digest losses against the Japanese Yen after prices found support below the 136.00 figure. A daily close below the 14.6% Fibonacci expansion at 135.94 exposes the 133.10-75 area (support shelf, June 29 low). Alternatively, a turn above the 137.28-97 zone (23.6% level, support-turned-resistance) clears the way for a test of the 38.2% Fib at 139.47.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- 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.