EUR/JPY Technical Analysis – Candle Setup Hints at Gains

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 137.45 (channel floor), 136.22 (Feb 4 low)
  • Resistance: 138.55 (14.6% Fib ret.), 139.10 (23.6% Fib ret.)

The Euro may be readying to turn higher against the Japanese Yen after prices put in a Bullish Engulfing candlestick pattern. Positive RSI divergence bolsters the case for the upside scenario. Initial resistance is at 138.55, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 139.10. Falling channel floor support comes in at 137.45. A turn below that clears a path to test the February 4 low at 136.22

While tempting, we will tactically opt not to pursue a long position. The ECB stands out among the major central banks as moving further to the dovish side of the monetary policy spectrum, putting the Euro at an inherent disadvantage.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

EUR/JPY Technical Analysis – Candle Setup Hints at Gains

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. Forex News

    EUR/USD Rebound Post-EZ CPI a Preview for ECB Next Week?

  2. Investing

    EUR/JPY Significant Bullish Pressure

  3. Forex News

    EUR/JPY Technical Analysis: Flat-Lining Near 147.00 Figure

  4. Forex News

    EURJPY Correction to Favor Short Scalp Entries Sub-1.48

  5. Forex News

    EUR Short Covering Elusive as More Talk of QE Inspires Bears

Trading Center