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- EUR/JPY Technical Strategy: Flat
- Support: 140.58 (rising trend line)
- Resistance: 141.75 (38.2% Fib exp.), 142.67 (falling trend line)
The Euro may be readying an upward reversal against the Japanese Yen after prices produced a bullish Piercing Line candlestick pattern above rising trend line support from mid-February. A daily close above initial resistance at 141.75, the 38.2% Fibonacci expansion, exposes a downward-sloping trend line resistance at 142.67. Trend line support is now at 140.58.
Prices are trading too close to relevant resistance to make a long trade attractive from a risk/reward perspective. Follow-through on the Piercing Line has also proven lackluster for an extended period at this point, casting doubt on the setup’s potency. We will stand aside for now and monitor future developments for opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com