DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 136.09-22, 135.27, 134.91
  • Resistance:137.26, 138.02, 138.39

The Euro moved lower as expected against the Japanese Yen after prices put in a Bearish Engulfing candlestick pattern. A daily close below the 136.09-22 area marked by the 23.6%Fibonacci expansion and the February 4 low exposes a falling channel floor at 135.27. Alternatively, a turn above rising trend line support-turned-resistance set from early August, now at 137.31, opens the door for a challenge of the August 1 high at 138.00.

Our order to enter short at 137.12 has been triggered and we are now in the trade, aiming for an initial objective of 136.22. A stop-loss has been set to activate on a daily close above 138.02. We will take profit on half of the position and move to stop-loss to the breakeven level once the initial target is reached.

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

EUR/JPY Technical Analysis: Short Position Now Activated

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Greece Referendum Makes for Big Headlines, Difficult Trading

  2. Forex News

    What to Expect From the Greek Referendum

  3. Forex News

    EUR/JPY Technical Analysis: Digesting Losses Near 136.00

  4. Forex News

    EUR/JPY Technical Analysis: Trying to Clear Path Downward

  5. Forex News

    Video: Euro Trades Curbed by Greece, US Payrolls Setups Complicated

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!