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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 134.13, 132.08, 130.13
- Resistance:137.64, 139.95, 142.27
The Euro advanced as expected against the Japanese Yen after prices put in a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fibonacci retracement at 137.64 exposes the 50% level at 139.95. Alternatively, a reversal below the 134.13-77 area marked by the October 16 low and the 23.6% Fib opens the door for a test of the February 2 low at 132.08.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
