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The Euro dropped to a six-week low against the Japanese Yen after clearing support at a rising trend line set from mid-February. Sellers are now testing the 140.00 figure, a psychological barrier reinforced by the 50% Fibonacci retracement. A break downward on a daily closing basis exposes the 61.8% level at 139.11. Alternatively, a reversal above the 38.2% Fib at 140.89 clears the way for a retest of the trend line, now at 141.27.
Prices are too close to relevant support to justify a short position at current levels from a risk/reward perspective. We will stand aside for now, looking for a break downward or a corrective bounce to yield a selling opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com