To receive Ilya's analysis directly via email, please SIGN UP HERE
The Euro has turned lower against Japanese Yen as expected, with prices testing below support at 139.88 marked by the 14.6% Fibonacci expansion to challenge the 23.6% level at 139.03. A break below the latter barrier exposes the 38.2% Fib at 137.65. Alternatively, a reversal back above 139.88 eyes the February 21 high at 141.26.
Confirmation of a breakdown requires a daily close below support. Furthermore, prices are too close to the 23.6% Fib to justify entering short on risk/reward grounds. Needless to say, defined upward reversal cues are absent. On balance, we will remain on the sidelines for now until something more actionable presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com