Forex Marketz Daily Forex News – Fully Markets Update
EUR/JPY (¥134.487)
Trade Strategy: Stand Aside
- Resistance Levels: 135.45, 137.65, 139.20
- Support Levels: 134.05, 131.85, 130.10
The euro did see a brief recovery here then stalled above the key pivot at ¥137before collapsing against the Japanese Yen. This was due to the new intensive QE program announced by the ECB yesterday, which weakened the euro against all of its major trading counterparts. The EUR/JPY is now trading near the October low. Please see the below daily MT 4 chart.
We need a daily close below the congestion area that runs from 134.15 to 134.05 to challenge the next technical support at 131.85. Should the euro reverse course, pushing the EUR/JPY higher, then we need to see a close back above 135.45 in order to challenge the technical resistance at 137.65.
Let’s look at price action right now. Please note that the EUR/JPY is trading near a support level. This means jumping in with a short trade does not make sense for right now. There are no bullish reversal signals at this time either. With the absence of an actionable trade opportunity I will sit on the sidelines and wait patiently for one to materialize.
