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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 140.44-89 (Mar 14 low, 38.2% Fib ret.), 140.00 (50% Fib ret.)
- Resistance: 142.00 (23.6% Fib ret.), 143.78 (Mar 7 high)
The Euro is testing support at the bottom of a range that has confined price action over the past two weeks having reversed lower as expected against the Japanese Yen. A break below the 140.44-89 area, marked by the March 14 low and the 38.2% Fibonacci retracement, exposes the 50% level at the 140.00 figure. Alternatively, a turn above the 23.6% Fibonacci retracementat 142.00 targets the March 7 high at 143.78.
Prices are too close to relevant near-term up- and downside technical barriers to make a trade at current levels attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for a more attractive setup to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com