EUR/JPY Technical Analysis: Short Position Parameters Set

By DailyFx | Updated August 26, 2014 AAA

DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 136.11-22, 135.32, 134.91
  • Resistance:137.26, 138.02, 138.42

The Euro declined against the Japanese Yen as expected after prices produced a Bearish Engulfing candlestick pattern. Near-term support is now in the 136.09-22 area, marked by the 23.6%Fibonacci expansion and the February 4 low, with a break below that on a daily closing basis exposing a falling channel floor at 1.3532. Alternatively, a reversal above rising trend line support-turned-resistance at 137.26 clears the way for a test of the August 1 high at 138.00.

The break of rising trend line support seems to confirm the case for down trend resumption but risk/reward parameters do not allow for entry at market. We will set an order to short the pair at 137.12 with an initial target of 136.22. If triggered, the trade will have a stop-loss to be activated on a daily close above 138.02.

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

EUR/JPY Technical Analysis: Short Position Parameters Set

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: Quiet Consolidation Continues

  2. Forex News

    Euro Flounders at Yearly Lows as Likelihood of ECB QE Increases

  3. Forex News

    EUR/JPY Technical Analysis: Digesting Losses Near 145.00

  4. Forex News

    Caution Holding Euro, USD, and Yen Positions as Borrowing Costs Rise

  5. Investing

    EUR/JPY Formed a Hammer on Wednesday

Trading Center