EUR/JPY Technical Analysis: Making Good on Bearish Setup
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- EUR/JPY Technical Strategy: Flat
- Support: 137.02, 135.89, 134.98
- Resistance:137.72, 139.22, 141.04
The Euro declined against the Japanese Yen as expected after prices put in a bearish Evening Star candlestick pattern. Near-term support is at 137.02, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 135.89. Alternatively, a move above the 14.6% expansion at 137.72 clears the way for a test of the 138.85-139.22 area (August 12 high, 76.4% Fib retracement).
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com