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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 139.11, 138.46, 137.81
- Resistance: 139.91, 140.41, 141.21
The Euro finds itself under pressure once again, with prices probing below the 139.00 figure against the Japanese Yen. Near-term support is at 139.11, the 38.2% Fibonacci retracement exposes, with a break below that on a daily closing basis exposing the 50% level at 138.46. Alternatively, a turn above the 23.6% Fib at 139.91 opens the door for a challenge of the 14.6% retracement at 140.41.
Risk/reward considerations argue against entering shortas prices hover just above support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable 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