To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 141.73 (23.6% Fib exp.), 139.95 (Mar 28 low)
- Resistance: 142.27 (trend line), 142.84 (38.2% Fib exp.)
The Euro looks poised to continue higher against the Japanese Yen after prices cleared resistance at 141.73, the 23.6% Fibonacci expansion. Buyers are now testing support-turned-resistance at a rising trend line set from early February (142.27), with a break above that exposing the 38.2% level at 142.84. Alternatively, a reversal back below 141.73 exposes the March 28 lowat 139.95.
Risk/reward considerations argue against entering long while prices trade squarely at relevant resistance. On the other hand, a short position lacks an actionable downward reversal signal to suggest that resistance will hold. As such, we will remain flat for now.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com