Sunday, February 1, 2015

EUR/JPY Technical Analysis: Stalling Below 135.00 Figure




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Talking Points:



  • EUR/JPY Technical Strategy: Flat


  • Support: 131.48, 129.71, 126.84


  • Resistance:134.77, 137.64, 139.95


The Euro is stalling against the Japanese Yen after putting in a bullish Morning Star candlestick pattern but a bounce may yet materialize. Positive RSI divergence reinforces the case for an advance. A daily close above the 134.13-77 area marked by the October 16 low and the 23.6% Fibonacci retracement exposes the 38.2% level at 137.64. Alternatively, a reversal below the 14.6% Fib expansion at 131.48 opens the door for a test of the 23.6% threshold at 129.71.



Positioning is inconclusive at this point, with prices offering no upside follow-through but likewise falling short of negating bullish reversal cues outright. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.



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EUR/JPY Technical Analysis: Stalling Below 135.00 Figure


Daily Chart – Created Using FXCM Marketscope



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





EUR/JPY Technical Analysis: Stalling Below 135.00 Figure

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