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EUR/JPY Technical Strategy: Flat
Support: 128.98, 128.58, 127.63
Resistance:130.13, 131.38, 132.63
The Euro seems to have overturned the down trend established against the Japanese Yen since mid-February. Near-term resistance is at 130.31, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 131.38. Alternatively, turn below trend line resistance-turned-support at 128.98 opens the door for a challenge of the 23.6% Fib at 128.58.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com