EUR/JPY Technical Analysis- Prices put in a bearish Evening Star candlestick pattern, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Initial support is at 123.70, the 14.6% Fibonacci retracement. A break below that exposes the 23.6% mark at 121.23. Near-term resistance is at 127.70, the February 6 high.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail firstname.lastname@example.org. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, please CLICK HERE