Forex Marketz Daily Forex News – Fully Markets Update
EUR/JPY (¥133.634)
- Resistance Levels: 134.78, 137.65, 139.94
- Support Levels: 131.50, 129.70, 126.85
Trading Strategy: Stand Aside
Looking at the below EUR/JPY daily MT 4 daily chart, we note the morning star candlestick. This hints the Euro is getting ready to move higher. Take that fact and then pair it with the RSI which is showing a positive divergence, this could happen sooner than later.
Near term resistance is now lining up at 134.78. This is the end of a small congestion area that starts at 134.12. A daily break and close above this level will challenge the next technical support at 137.65. Should the euro move lower, sending the EUR/JPY down, then we see support at 131.50. A break below this level will challenge the technical support level at 129.70.
Taking a long position right now is not quite right. We are trading too close to a resistance level, so timing from a risk to reward perspective is not quite right. Taking a short position is not feasible as well. Why? The absence of any clear bearish reversal signals. Today’s strategy is to stand aside waiting for a clearer trade opportunity to emerge.
