Ilya Spivak, of DailyFX.com, takes a technical look at how the euro is waiting for directional guidance against the Japanese yen as prices trend water on Tuesday and recommends waiting for an actionable opportunity to present itself.
· EUR/JPY Technical Strategy: Flat
· Support: 137.51, 135.33, 133.56
· Resistance: 140.15, 141.50, 142.69
The euro continues to wait for directional guidance against the Japanese yen as prices tread water above the 137.00 figure. Near-term support is at 137.51—the 23.6% Fibonacci retracement—with a break below that on a daily closing basis exposing the 38.2% level at 135.33. Alternatively, a move above the 14.6% Fib at 140.15 opens the door for a challenge of the 23.6% expansion at 141.50.
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 an actionable opportunity to present itself.
Daily Chart—Created Using FXCM Marketscope
Click to Enlarge
By Ilya Spivak, Currency Strategist, DailyFX.com
