EUR/JPY Technical Analysis: Bounce Pauses Below Resistance

By DailyFx | Updated August 18, 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, 135.59, 135.18
  • Resistance:137.62, 138.80, 139.75

The Euro is attempting to bounce against the Japanese Yen as expected after showing positive RSI divergence on a test of February’s swing bottom. Near-term resistance is at 137.62, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the intersection of the 38.2% level and a falling channel top at 138.80. Alternatively, a reversal below in the 136.22-27 area, marked by the February 4 low and the 23.6% Fib expansion, clears the way for a test of the channel floor at 135.59.

We are tactically opting not to pursue a long position, choosing not be long the Euro considering the ECB is shaping up to be the most dovish of the major central banks over the coming months. Rather, we will continue to monitor the upswing for opportunities to enter short.

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

EUR/JPY Technical Analysis: Bounce Pauses Below Resistance

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: Cautious Recovery Continues

  2. Forex News

    EUR/JPY Technical Analysis: Support Sub-127.00 Holding

  3. Forex News

    ECB Press Conference Invites Minimal Volatility, Limited EUR/USD Range

  4. Forex News

    Trade Setups in EUR-crosses Ahead of ECB Meeting

  5. Forex News

    EUR/JPY Technical Analysis: Six-Day Loss Streak Broken

Trading Center