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Bearish Focus

EURO-YEN TECHS
  • RES 4: 124.23 Bear channel top drawn off the Sep 1 high
  • RES 3: 124.00 High Oct 27
  • RES 2: 123.60 50-day EMA
  • RES 1: 123.18 High Nov 5
  • PRICE: 122.47 @ 10:41 GMT Nov 6
  • SUP 1: 121.62 Low Oct 30
  • SUP 2: 121.50 0.764 proj of Sep 1 - 28 decline from Oct 9 high
  • SUP 3: 120.50Bear channel base drawn off the Sep 1 high
  • SUP 4: 120.39 1.000 proj of Sep 1 - 28 decline from Oct 9 high

EURJPY is trading above recent lows but despite the recent recovery, maintains a bearish tone following last week's sell-off. The cross has recently cleared support at 123.03/02 and 122.38, Sep 28 low. This move lower confirmed a resumption of the downleg that started Sep 1. Scope is seen for weakness towards 121.50 next, a Fibonacci projection. Further out, 120.39 is on the radar, also a Fibonacci projection. Initial resistance is at 123.18.

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