EUR/JPY Technical Analysis: Attempting to Correct Upward

By DailyFx | Updated August 13, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 136.22-27, 135.72, 135.18
  • Resistance:137.62, 138.80, 139.75

The Euro is trying to build higher against the Japanese Yen as expected after positive RSI divergence was spotted on a test of February’s swing bottom. A daily close above the 23.6% Fibonacci retracement at 137.62 exposes the intersection of the 38.2% level and a falling channel top at 138.80. Alternatively, a turn below support in the 136.22-27 area, marked by the February 4 low and the 23.6% Fib expansion, opens the door for a challenge of the channel floor at 135.72.

The ECB looks to be the most dovish of the leading central banks, putting the Euro at a disadvantage against its major counterparts. With that in mind, we will opt not to pursue a long position and wait for the bounce to produce a selling opportunity.

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

EUR/JPY Technical Analysis: Attempting to Correct Upward

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/JPY Technical Analysis: Looking to Confirm Reversal

  2. Forex News

    EUR/JPY Technical Analysis: Bottom Set Above 130.00?

  3. Forex News

    Trading Video: Dollar and S&P 500 Look Precarious Before FOMC

  4. Forex News

    Doubt in Greek Election, Capital Market Climb Confidence Highlights EURJPY

  5. Forex News

    EUR/JPY Technical Analysis: Euro Gains Most in 2 Months

Trading Center