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Talking Points:
- EUR/JPY Technical Strategy: Flat
- Support: 144.95, 143.80, 141.95
- Resistance:147.23, 148.64, 149.78
The Euro corrected higher after dropping to a one-month low near the 145.00 figure against the Japanese Yen. Near-term resistance is at 147.23, the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 148.64. Alternatively, a turn below December 16 low at 144.95 clears the way for a challenge of the 38.2% Fib retracement at 143.80.
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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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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