EUR/JPY Technical Analysis: Rebound Stalls Below 137.00
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- EUR/JPY Technical Strategy: Flat
- Support: 134.83, 133.91, 133.00
- Resistance:136.26, 137.17, 138.08
The Euro stalled below the 137.00 figure against the Japanese Yen after attempting to rebuild upside momentum. Near-term resistance is at 136.26, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 137.17. Alternatively, a turn below the 38.2% Fib expansion at 134.83 opens the door for a challenge of the 50% Fib at 133.91.
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.