Forex: EUR/JPY Technical Analysis – Testing Support Below 141.00
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Talking Points:
EUR/JPY Technical Strategy: Flat
Support: 140.73-89 (horizontal pivot, 38.2% Fib ret.), 140.00 (50% Fib ret.)
Resistance: 142.00 (23.6% Fib ret.), 143.78 (Mar 7 high)
The Euro continues to trade sideways above support in the 140.73-89 area, marked by a horizontal pivot and the 38.2% Fibonacci retracement, having fallen as expected against the Japanese Yen. A break downward initially exposes the 50% level at the 140.00 figure. Alternatively, a move above near-term resistance at 142.00 – the 23.6% Fibonacci retracement, targets the March 7 high at 143.78.
Risk/reward considerations argue against entering short with prices so close to support. On the other hand, taking up the long side looks premature absent a defined reversal signal. We will continue to stand aside until a more actionable setup emerges.
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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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