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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 142.63 (76.4% Fib exp.), 141.89 (61.8% Fib exp.)
- Resistance: 143.82 (100% Fib exp.), 145.01 (123.6% Fib exp.)
The Euro is stalling after taking out resistance at 142.63 against the Japanese Yen, a level marked by the 76.4% Fibonacci expansion. Near-term resistance is at 143.82, the 100% expansion, with a break above that targeting the 123.6% Fib at 145.01. Alternatively, a reversal below 142.63 initially aims for the 61.8% level at 141.89.
Prices are too close to support to justify a short position from a risk/reward position. The formation of a bearish Dark Cloud Cover candlestick pattern warns against betting on the long side however, at least for the time being. We will stand aside for now and monitor how positioning develops from here.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com