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- 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 – the 38.2% Fib – 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.
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Daily Chart - Created Using FXCM Marketscope 2.0