DailyFX.com -

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

Talking Points:

  • EUR/JPY Technical Strategy: Flat
  • Support: 137.65-83, 136.93, 136.58
  • Resistance: 138.32, 138.75, 139.27

The Euro is attempting to renew its downtrend against the Japanese Yen, with prices moving to challenge the mid-June swing bottom. Near-term support is in the 137.65-83 area, marked by the 23.6% Fibonacci expansion and the June 12 low. A daily close below that initially exposes the 38.2% level at 136.93, a threshold bolstered by a falling channel bottom at 136.58. Alternatively, a turn back above the trend line – now recast as resistance at 138.32 – opens the door for a move to the July 9 high at 138.75.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

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

EUR/JPY Technical Analysis: Working to Resolve June Low

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: Digesting Losses Near 136.00

  2. Forex News

    EUR/JPY Technical Analysis: Trying to Clear Path Downward

  3. Forex News

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

  4. Forex News

    Video: Will the Market Move on NFPs with Liquidity, Greece Hanging Over It?

  5. Forex News

    EUR/JPY Technical Analysis: Eyeing Support Above 135.00

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!