EUR/JPY Technical Analysis: Candle Setup Hints at Weakness
To receive Ilya's analysis directly via email, please SIGN UP HERE
- EUR/JPY Technical Strategy: Flat
- Support: 137.72, 137.02, 135.89
- Resistance:139.22, 141.04, 142.23
The Euro may be preparing to turn lower against the Japanese Yen after putting in a bearish Evening Star candlestick pattern. Near-term support is at 137.72, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 137.02. Alternatively, a move above the 76.4% Fib retracement at 139.22 clears the way for a test of the June 4 high at 141.04.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com