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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 141.21, 139.54, 138.51
- Resistance: 142.88, 143.92, 144.75
The Euro continued to advance against the Japanese Yen after last week’s BOJ stimulus expansion, tagging an eight-month high. A daily close above the 123.6% Fibonacci expansion at 142.88 exposes the 138.2% level at 143.92. Alternatively, a turn below resistance-turned-support at 141.21, the September 19 high, opens the door for a challenge of the 76.4% Fib retracement at 139.54.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com