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The Euro may be on the verge of a reversal higher against the Japanese Yen after prices put in a bullish Piercing Line candlestick pattern above support at a rising trend line set from mid-February. Near-term resistance is at 141.75, the 38.2% Fibonacci expansion, with a break above that targeting a downward-sloping barrier at 142.89. Trend line support is now at 140.35.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com