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Talking Points:
- EUR/JPY Technical Strategy: Short at 137.12
- Support: 136.09-22, 134.91, 133.96
- Resistance:138.02-05, 138.80, 139.75
The Euro may be readying to turn lower against the Japanese Yen anew after putting in a Shooting Star candlestick near the 138.00 figure. Near-term support is in the 36.09-22 area, marked by the February 4 low and the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the intersection of a falling channel floor and the 38.2% level at 134.91. Alternatively, a move above resistance in the 138.02-05 zone (August 1 high, channel top) clears the way for a test of the 38.2% Fibonacci retracement at 138.80.
We sold EURJPY at 137.12, initially targeting 136.22 with a stop-loss to be activated on a daily close above 138.02. The trade narrowly survived being stopped out yesterday and will remain in the position, looking for downward resumption ahead.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com