Thursday, May 22, 2014

EUR/JPY Technical Analysis ? Support Found Above 138.00




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Talking Points:



  • EUR/JPY Technical Strategy: Flat


  • Support: 138.13 (May 21 low), 138.00


  • Resistance: 139.16 (23.6% Fib ret.), 139.79 (38.2% Fib exp.)


The Euro is attempting to launch a recovery against the Japanese Yen having found interim support above the 138.00 figure. Near-term resistance is at 139.16, the 23.6% Fibonacci retracement, with a break above that aiming for the 38.2% level at 139.79. Initial support is at 138.13, the May 21 low, followed by the 138.00 handle.



Risk/reward considerations argue against entering long with prices sitting squarely at relevant resistance. On the other hand, taking up the short side seems premature in the absence of a defined bearish reversal signal. We will remain on the sidelines for the time being.



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EUR/JPY Technical Analysis – Support Found Above 138.00


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/JPY Technical Analysis ? Support Found Above 138.00

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