EUR/JPY Technical Analysis – Inching Closer to 138.00 Mark
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Talking Points:
EUR/JPY Technical Strategy: Flat
Support: 138.34 (100% Fib exp.), 137.73 (123.6% Fib exp.)
Resistance: 138.95 (76.4% Fib exp.), 139.33 (61.8% Fib exp.)
The Euro has touched the lowest level in nearly four months against the Japanese Yen, coming within a hair of the 138.00 figure. Near-term support is at 138.34, the 100%Fibonacci expansion. A break below this barrier on a daily closing basis exposes the 123.6% level at 137.73. Alternatively, a reversal above the 76.4% Fib at 138.95 opens the door for a challenge of the 61.8% expansion at 139.33.
The available trading range is too narrow to justify taking up the long or short side from a risk/reward perspective (given a strategy using a stop-loss triggered on a daily closing basis, as ours does). We will remain flat for now.
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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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