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EUR/JPY Technical Analysis – Stalling After Range Break

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Talking Points:

The Euro stalled against the Japanese Yen after dropping through the floor of a four-day congestion range. The first layer of support is at 138.34, the 23.6% Fibonacci expansion, with a daily close below that opening the door for a test of the 38.2% level at 137.99. Resistance comes in at 138.58, the 38.2% Fib retracement. A turn back above that aims for the 50% threshold at 138.87.

The available trading range is too narrow to justify taking a trade on the long or short side from a risk/reward perspective. We will continue to stand aside, waiting for a more attractive opportunity to present itself.

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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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