EUR/JPY Technical Analysis – Euro Drops to 4-Month Low

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: 137.83 (50% Fib exp., channel floor), 137.30 (61.8% Fib exp.)
  • Resistance: 138.36 (38.2% Fib exp.), 139.02 (23.6% Fib exp.)

The Euro dropped to a four-month low against the Japanese Yen having reversed lower after finding resistance near the 140.00 figure. Critical support lines up at 137.83, the intersection of the 50% Fibonacci expansion and a falling channel bottom. A break downward on a daily closing basis exposes the 61.8% level at 137.30. Alternatively, a reversal above resistance at 138.36 โ€“ the 38.2% Fib โ€“ targets the 23.6% expansion at 139.02.

Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. We will remain flat for now.

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

EUR/JPY Technical Analysis โ€“ Euro Drops to 4-Month Low

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. EUR/JPY Technical Analysis: Flat-Lining Near 147.00 Figure
    Forex News

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

  2. EURJPY Correction to Favor Short Scalp Entries Sub-1.48
    Forex News

    EURJPY Correction to Favor Short Scalp Entries Sub-1.48

  3. EUR Short Covering Elusive as More Talk of QE Inspires Bears
    Forex News

    EUR Short Covering Elusive as More Talk of QE Inspires Bears

  4. EUR/JPY Technical Analysis: Marking Time Below 148.00
    Forex News

    EUR/JPY Technical Analysis: Marking Time Below 148.00

  5. EUR/JPY Technical Analysis: Support Found Above 145.00
    Forex News

    EUR/JPY Technical Analysis: Support Found Above 145.00

Trading Center