Talking Points:
The Euro moved lower against the Japanese Yen as expected after prices produced a Shooting Star candlestick, dropping the most in 17 months. A daily close below the 23.6% Fibonacci retracement at 145.59 exposes the 38.2% level at 143.40. Alternatively, a reversal above the 14.6% Fib at 146.94 opens the door for a challenge of the November 20 high at 149.13.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.