EUR/JPY Technical Analysis – Euro Slumps to 3-Month Low
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Talking Points:
EUR/JPY Technical Strategy: Flat
Support: 138.95 (76.4% Fib exp.), 138.34 (100% Fib exp.)
Resistance: 139.33 (61.8% Fib exp.), 139.64 (50% Fib exp.)
The Euro continues to sink against the Japanese Yen, with prices sinking to the lowest level in three months. The pair is probing support at 138.95, the 76.4% Fibonacci expansion, with a daily close below that exposing the 100% level at 138.34. Near-term resistance is at 139.33, the 61.8% Fib, with a turn back above that clearing the way for a test of the 50% expansion at 139.64.
Risk/reward considerations argue against entering short with prices sitting squarely at relevant support. We will continue to stand aside for now, waiting for a more attractive setup to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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