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Bearish Outlook Despite Bounce

EURJPY TECHS
  • RES 4: 140.07/13 High Jul 25 / Trendline drawn from the Jun 28 high
  • RES 3: 139.41 High Jul 28
  • RES 2: 138.16/ 50-day EMA / High Aug 10
  • RES 1: 137.40 20-day EMA
  • PRICE: 136.55 @ 06:36 BST Aug 17
  • SUP 1: 134.84 Low Aug 3
  • SUP 2: 133.40 Low Aug 2 and a bear trigger
  • SUP 3: 132.66 Low May 12 and a key support
  • SUP 4: 131.99 61.8% retracement of the Mar 7 - Jun 28 bull leg

EURJPY traded higher Tuesday. Despite these gains, the short-term outlook remains bearish. Moving average studies highlight a downtrend and the 50-day EMA, at 138.16, marks a firm resistance. A continuation lower would open the 133.40 bear trigger. Clearance of resistance at the 50-day EMA would alter the picture and signal scope for a climb towards the 140.13 trendline resistance.

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