Tuesday, February 25, 2014

Forex: EUR/JPY Technical Analysis ? Quiet Consolidation Continues




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Talking Points:



  • EUR/JPY Technical Strategy: Flat


  • Support: 139.83-93 (38.2% Fib ret., Feb 11 close), 139.31 (horizontal pivot)


  • Resistance: 140.73-95 (Jan 13 close, 50% Fib ret.), 142.07 (61.8% Fib ret.)


Prices continue to tread water below resistance in the 140.73-95 area, marked by the January 13 close and the 50% Fibonacci retracement. Negative RSI divergence warns of ebbing bullish and hints a reversal lower may be ahead. Breaking support in the 139.83-93 region, defined by the 38.2% Fib and the February 11 close, exposes a horizontal pivot at 139.31 and the 23.6% retracement at 138.45. Alternatively, a turn above resistance aims for the 61.8% level at 142.07.



RSI divergence alone is not an actionable signal and requires added confirmation to trigger a short position. We will continue to stand on the sidelines for now, waiting for prices to produce an actionable entry opportunity.



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dailyclassics_eur-jpy_body_Picture_12.png, Forex: EUR/JPY Technical Analysis – Quiet Consolidation Continues


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





Forex: EUR/JPY Technical Analysis ? Quiet Consolidation Continues

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