To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• EUR/JPY Technical Strategy: Flat

• Support: 138.91 (14.6% Fib ret., 138.06 (23.6% Fib ret.)

• Resistance: 140.29 (Feb 11 high), 140.73-95 (horizontal pivot, 50% Fib ret.)

Our decision to pass on a short EUR/JPY trade setup seems to be proving prudent as the pair attempts to break resistance at 140.29, the February 11 high. A daily close above this boundary sees the next upside barrier in the 140.73-95 area, marked by a horizontal pivot and the 50% Fibonacci retracement. For now, near-term support remains at 138.91, the 14.6% Fib expansion.

Entering long here looks premature absent confirmation of an upside breakout on a daily closing basis. On the other hand, fighting upside momentum by taking up the short side seems ill-advised absent a defined reversal signal. We will continue to stand aside for now.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

Daily Chart - Created Using FXCM Marketscope 2.0

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.