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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 136.36, 136.22-23, 135.97
- Resistance: 136.65, 137.08, 137.34
The Euro is testing trend support against the Japanese Yen after dropping to the lowest level in nearly six months. A daily close below support at 136.36, the bottom of a falling channel set from mid-March, exposes the 136.22-23 area marked by the February 4 low and the 123.6% level. Alternatively, a reversal above the 100% Fib at 136.65 opens the door for a challenge of the 76.4% Fib at 137.08.
Prices are wedged too closely between near-term support and resistance levels to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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