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- EUR/JPY Technical Strategy: Flat
- Support: 140.54 (rising trend line)
- Resistance: 141.75 (38.2% Fib exp.), 142.70 (falling trend line)
The Euro may be on the verge of a reversal higher against the Japanese Yen after prices put in a bullish Piercing Line candlestick pattern above a rising trend line set from February. Near-term resistance is at 141.75, the 38.2% Fibonacci expansion, with a break above that targeting a downward-sloping barrier at 142.70. Trend line support is now at 140.54.
The available trading range is too narrow to justify a trade from a risk/reward perspective. Furthermore, follow-through on the Piercing Line has been absent for some time now, raising questions about 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