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Forex: EUR/JPY Technical Analysis – A Top Forming Below 141.00?

Ilya Spivak

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Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 139.83-93 (38.2% Fib ret., Feb 11 close), 139.31 (horizontal pivot)
  • Resistance: 140.73-95 (Jan 13 close, 50% Fib ret.), 142.07 (61.8% Fib ret.)

Prices are still consolidating above support in the 139.83-93 area, markedby the 38.2%Fibonacci retracementand the February 11 close. Negative RSI divergence warns of ebbing bullish momentum and hints a reversal lower may be ahead. A break downward initially targets a horizontal pivot at 139.31 and the 23.6% level at 138.45. Alternatively, pushing above resistance in the 140.73-95 region (January 13 close, 50% Fib) exposes the 61.8% level at 142.07.

RSI divergence alone is not an actionable signal and we will opt to wait for a clear-cut directional break past the established range boundaries to yield a trade-able setup. In the meantime, we will remain on the sidelines.

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dailyclassics_eur-jpy_body_Picture_12.png, Forex: EUR/JPY Technical Analysis – A Top Forming Below 141.00?

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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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