EUR/JPY Technical Analysis: Trying to Clear Path Above 139

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Talking Points:

• EUR/JPY Technical Strategy: Flat
• Support: 137.17, 136.26, 135.58
• Resistance:138.08, 139.22, 141.04

The Euro is working on a third consecutive advance against the Japanese Yen, with prices trying to clear a path above the 139.00 figure. A daily close above the 61.8% Fibonacci retracementat 138.08 exposes the 76.4% level at 139.22. Alternatively, a move below the 50% Fib at 137.17 clears the way for a test of the 38.2% retracement at 136.26.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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