EUR/JPY Technical Analysis: Trend Line Support in Focus
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- EUR/JPY Technical Strategy: Flat
- Support: 135.40, 134.83, 133.91
- Resistance:135.96, 136.66, 137.79
The Euro edged lower against the Japanese Yen as expected after showing a bearish Evening Star candlestick pattern. A daily close below trend line support at 135.40 exposes the 38.2% Fibonacci expansion at 134.83. Alternatively, a move above the 23.6% level at 135.96 clears the way for a test of the 14.6% Fib at 136.66.
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.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com