DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 136.30, 135.60, 134.46
  • Resistance: 137.25, 137.80, 138.69

The Euro may be preparing to launch a recovery against the Japanese Yen after prices produced a bullish Morning Star candlestick pattern. Near-term resistance is at 137.25, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 137.80. Alternatively, a turn below the intersection of a falling channel floor and the 61.8% Fib expansion at 136.30 clears the way for a challenge of the 76.4% threshold at 135.60.

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: Preparing to Correct Higher?

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: Euro Down Trend Resuming?

  2. Forex News

    Global Economy, Central Banks Look for Further Improvement in GDP Data

  3. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  4. Forex News

    Risk Aversion Builds Pace, Pound Faces Volatility on UK GDP Data

  5. Forex News

    USDJPY Will Drop as Risk Aversion Intensify, But It Will Rally if Severe

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!