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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 140.62 (rising trend line)
- Resistance: 141.75 (38.2% Fib exp.), 142.62 (falling trend line)
The Euro may be working on a move higher against the Japanese Yen after prices completed a bullish Piercing Line candlestick pattern at rising trend line support from mid-February. Follow-through has been lacking since the formation’s emergence however, raising questions about its potency. A daily close above initial resistance at 141.75, the 38.2% Fibonacci expansion, exposes a downward-sloping trend line resistance at 142.62. Trend line support is now at 140.62.
Risk/reward considerations argue against taking a long position with prices trading so close to relevant resistance. We will remain flat for the time being, waiting for a more attractive setup 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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