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Talking Points:
- EUR/JPY Technical Strategy: Short at 143.02
- Support: 141.83, 140.36, 139.17
- Resistance: 144.46, 145.93, 147.12
The Euro is trying to overturn a bearish reversal chart setup against the Japanese Yen marked by a Dark Cloud Cover candle pattern formed last week. A daily close above resistance in the 144.21-46 area marked by the November 6 high and the 23.6% Fibonacci expansion exposes the 38.2% level at 145.93. Alternatively, a turn below the 23.6% Fib retracement at 141.83 opens the door for a challenge of the 38.2% threshold at 140.36.
We entered short EURJPY at 143.02, initially targeting 141.83. A stop-loss will be triggered on a daily close above 144.21. We will take profit on half of the position and move the stop- breakeven (143.02) once the first objective is reached.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com