EUR/JPY Technical Analysis: Working to Resolve June Low

By DailyFx | July 15, 2014 AAA

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

comments powered by Disqus
Related Forex Analysis
  1. EUR/JPY Technical Analysis: Passing on Long Trade Setup
    Forex News

    EUR/JPY Technical Analysis: Passing on Long Trade Setup

  2. EUR/USD Pivots at Last Week’s Low - Surprise PMIs End EZ Data Drought
    Forex News

    EUR/USD Pivots at Last Week’s Low - Surprise PMIs End EZ Data Drought

  3. EUR/JPY Technical Analysis: Former Resistance Now Support
    Forex News

    EUR/JPY Technical Analysis: Former Resistance Now Support

  4. EUR/JPY Technical Analysis: Euro Rebound Meets Resistance
    Forex News

    EUR/JPY Technical Analysis: Euro Rebound Meets Resistance

  5. EUR/JPY Technical Analysis: Fighting Resistance Below 137.00
    Forex News

    EUR/JPY Technical Analysis: Fighting Resistance Below 137.00

Trading Center