EUR/JPY Technical Analysis: Six-Month Down Trend Broken

To receive Ilya’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 138.02, 136.38, 135.70
  • Resistance: 138.79, 139.74, 140.69

The Euro has seemingly overturned a six-month down trend against the Japanese Yen after clearing a key channel top. Near-term resistance is now at 138.79, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 139.74. Alternatively, a turn below the intersection of the former range and channel top resistance at 138.02 clears the way for a test of a horizontal pivot at 136.38.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/JPY Technical Analysis: Six-Month Down Trend Broken

Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

This entry was posted in Binary Options Signals Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *