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- EUR/JPY Technical Strategy: Flat
- Support: 137.65-83, 136.93, 136.63
- Resistance: 138.29, 138.75, 139.27
The Euro turned lower anew against the Japanese Yen, dropping below support guiding the upswing from the mid-June swing bottom. Initial support is in the 137.65-83 area, marked by the 23.6% Fibonacci expansion and the June 12 low. A break below that on a daily closing basis exposes the 38.2% level at 136.93. This barrier is reinforced by a falling channel bottom at 136.63. Alternatively, a turn back above the trend line – now recast as resistance at 138.29 – opens the door for a move to the July 9 high at 138.75.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more attractive opportunity to emerge.
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Daily Chart - Created Using FXCM Marketscope 2.0