EUR/JPY Technical Analysis: Short Position Parameters Set

By DailyFx | 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

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

  5. What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank
    Forex News

    What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank

Trading Center