Wednesday, August 27, 2014

EUR/JPY Technical Analysis: Short Position Now Activated




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Talking Points:



  • EUR/JPY Technical Strategy: Flat


  • Support: 136.09-22, 135.27, 134.91


  • Resistance:137.26, 138.02, 138.39


The Euro moved lower as expected against the Japanese Yen after prices put in a Bearish Engulfing candlestick pattern. A daily close below the 136.09-22 area marked by the 23.6%Fibonacci expansion and the February 4 low exposes a falling channel floor at 135.27. Alternatively, a turn above rising trend line support-turned-resistance set from early August, now at 137.31, opens the door for a challenge of the August 1 high at 138.00.



Our order to enter short at 137.12 has been triggered and we are now in the trade, aiming for an initial objective of 136.22. A stop-loss has been set to activate on a daily close above 138.02. We will take profit on half of the position and move to stop-loss to the breakeven level once the initial target is reached.



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EUR/JPY Technical Analysis: Short Position Now Activated


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/JPY Technical Analysis: Short Position Now Activated

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