EUR/JPY Technical Analysis- Prices are testing above resistance in the 128.42-96 are, marked by the 23.6% Fibonacci expansion and a falling trend line set from the May swing high. A break higher confirmed on a daily closing basis exposes the 38.2% Fib at 130.72. We will continue holding our short position for now pending a confirmed trend line breach. Near-term support is at 126.56, the June 26 low.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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