EUR/JPY Technical Analysis: Channel Support Holds Up

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: 138.21, 137.91, 137.65
  • Resistance: 139.10, 139.33, 140.00

The Euro is inching upward against the Japanese Yenas expected after prices produced a Bullish Engulfing candlestick pattern. A daily close above resistance at 139.10, the 23.6% Fibonacci retracement, initially exposes the top of a rising channel set from mid-June, now at 139.33. Alternatively, a drop through channel support – now at 138.21 – targets swing lows in the 137.65-91 area.

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: Channel Support Holds Up

Daily Chart - Created Using FXCM Marketscope 2.0

Related Forex Analysis
  1. Forex News

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

  2. Forex News

    EURJPY Correction to Favor Short Scalp Entries Sub-1.48

  3. Forex News

    EUR Short Covering Elusive as More Talk of QE Inspires Bears

  4. Forex News

    EUR/JPY Technical Analysis: Marking Time Below 148.00

  5. Forex News

    EUR/JPY Technical Analysis: Support Found Above 145.00

Trading Center