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Forex: EUR/JPY Technical Analysis ? Bullish Flag Setup Negated

February 3, 2014

Ilya Spivak

Talking Points: EUR/JPY Technical Strategy: Flat Support: 136.23 (76.4% Fib exp.), 134.69 (100% Fib exp.) Resistance: 137.19 (61.8% Fib exp.), 137.97 (50% Fib exp.) Waiting for confirmation before attempting to trade a would-be bullish Flag chart formation identified yesterday proved prudent: prices overturned the setup, pushing aggressively lower to take the Euro to its weakest in over two months against the Yen. Prices are now testing support at 136.23, the 76.4% Fibonacci expansion, with a break below that exposing the 100% level at 134.69. Alternatively, reversing above resistance at 137.19 - the 61.8% Fib - targets the 50% expansion at 137.97. An actionable trade setup is absent for the time being and we will remain on the sidelines.

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Source: DailyFx

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