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- EUR/JPY Technical Strategy: Flat
- Support: 140.79 (trend line)
- Resistance: 142.22 (23.6% Fib exp.), 143.32 (38.2% Fib exp.)
The Euro turned lower against the Japanese Yen as expected. Prices may be readying to turn higher anew however, with the pair carving out a Bullish Engulfing candlestick pattern above support at a rising trend line set from early February. Initial resistance is marked by the 23.6% Fibonacci expansion at 142.22, with a break above that exposing the 38.2% level at 143.32. Trend line support is now at 140.79.
Risk/reward considerations argue against entering a long position at this point with prices trading too close to relevant resistance. We will continue to stand aside for now until a more attractive trade setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com