EUR/JPY Technical Analysis: Waiting for Direction Cues

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Talking Points:

• EUR/JPY Technical Strategy: Flat

• Support: 135.48, 134.31, 133.10

• Resistance:136.83, 137.97, 139.01

The Euro is treading water after finding interim support above the 133.00 figure against the Japanese Yen. A daily close above the 23.6% Fibonacci expansion at 136.83 exposes support-turned-resistance at 137.97, the June 12 low. Alternatively, a move below the 14.6% level at 135.48 clears the way for a test of the July 17 bottom at 134.31.

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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EUR/JPY Technical Analysis: Waiting for Direction Cues

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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