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

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    US Dollar and Japanese Yen on Target to Hit these Price Levels

  2. Forex News

    USDOLLAR Index Makes First Attempt at Breakout

  3. Forex News

    EUR/JPY Technical Analysis: Euro Trims Weekly Open Gap

  4. Forex News

    What are the Traits of Successful Traders?

  5. Forex News

    Webinar: Greek Gaps in Focus- Technical Setups in Play this Week

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!