EUR/JPY Technical Analysis: Stalling at Trend Line Support
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 135.65, 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 135.65 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.
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.