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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 137.72, 137.02, 135.89
- Resistance:139.22, 141.04, 142.23
The Euro may be carving out a top against the Japanese Yen having produced a bearish Evening Star candlestick pattern. A daily close below the 14.6% Fibonacci expansionat 137.72 exposes the 23.6% level at 137.02. Alternatively, a push above the 76.4% Fib retracement at 139.22 opens the door for a challenge of the June 4 high at 141.04.
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
