Yahoo Finance 
EUR/JPY Technical Analysis: Two-Month Support at Risk
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Talking Points:
EUR/JPY Technical Strategy: Flat
Support: 135.60, 135.05, 134.37
Resistance: 136.15, 136.83, 137.93
The Euro is working on the third consecutive daily drop against the Japanese Yen, with prices probing below a two-month-old support shelf. A daily close below the 135.60-72 are marked by the August 8 low and the 50% Fibonacci expansion exposes the 61.8% level at 135.05. Alternatively, a reversal above the 38.2% Fib at 136.15 opens the door for a challenge of the 23.6% expansion at 136.83.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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