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Talking Points:
– EUR/JPY Technical Strategy: Flat
– Support: 130.09, 128.31, 123.10
– Resistance: 134.13, 135.43, 137.63
The Euro has dropped to levels not seen since September 2013 against the Japanese Yen, with prices aiming to test the 130.00 figure. Immediate support is at 131.87, the 38.2% Fibonacci expansion, and a break below that on a daily closing basis could lead to the 50% level at 130.09. On the other hand, a move above the 134.07-13 area, which includes the 23.6% Fib and the October 16 low, could open the door for a challenge of the 14.6% expansion at 135.43.
Considering risk/reward factors, it may not be wise to enter a short position with prices near support. However, the absence of a clear bullish reversal signal suggests that going long is premature. For now, we will remain on the sidelines and wait for a more favorable opportunity to present itself.
For those interested, you can add these technical levels directly to your charts with our Support/Resistance Wizard app.
Daily Chart – Created Using FXCM Marketscope
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
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