EUR/JPY Technical Analysis: Eyeing 4-Month Channel Floor

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: 136.65, 136.44, 136.22-23
  • Resistance: 137.08, 137.34, 137.55

The Euro has renewed its push downward against the Japanese Yen, with prices dropping to the lowest level in nearly six months. A daily close below support at 136.65, the 100% Fibonacci expansion, clears the way for a test of falling channel support set from mid-March (now at ). Alternatively, a reversal above the 76.4% level at 137.08 opens the door for a challenge of the 61.8% Fib at 137.34.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

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

EUR/JPY Technical Analysis: Eyeing 4-Month Channel Floor

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

Related Forex Analysis
  1. Forex News

    EUR/JPY Technical Analysis: Move Below 144.00 Expected

  2. Forex News

    EUR/JPY Technical Analysis: Sellers Try to Retake Initiative

  3. Forex News

    ST Technicals Offer Moment of Reflection in EUR-crosses

  4. Forex News

    EUR/JPY Technical Analysis: Key Support Just Above 146.00

  5. Forex News

    Positioning Unwind May be Driving Factor, Not QE, for Euro

Trading Center