Sunday, November 2, 2014

EUR/JPY Technical Analysis: Probing Above 141.00 Figure




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Talking Points:



  • EUR/JPY Technical Strategy: Flat


  • Support: 139.54, 138.51, 137.67


  • Resistance: 141.21, 142.24, 142.88


The Euro soared to the highest level in six months against the Japanese Yen after an unexpected expansion of BOJ stimulus. Near-term resistance is at 141.21, the September 19 high, with a break below that on a daily closing basis exposing the 114.6% Fibonacci extension at 142.24. Alternatively, a reversal below the 76.4% Fib retracement at 139.54 clears the way for a test of the 61.8% level at 138.51.



Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.



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EUR/JPY Technical Analysis: Probing Above 141.00 Figure


Daily Chart – Created Using FXCM Marketscope 2.0



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





EUR/JPY Technical Analysis: Probing Above 141.00 Figure

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