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Corrective Cycle

EURJPY TECHS
  • RES 4: 130.29 High Feb 25
  • RES 3: 129.40 50-day EMA
  • RES 2: 128.77 50% Retracement Feb - Mar Downleg
  • RES 1: 128.49 Intraday high
  • PRICE: 128.31 @ 07:21 GMT Mar 10
  • SUP 1: 126.01 Low Mar 9
  • SUP 2: 124.40/28 Low Mar 7 / 50.0% of the 2020 - 2021 bulls cycle
  • SUP 3: 123.45 1.618 proj of the Jan - Sep - Oct ‘21 price swing
  • SUP 4: 123.01 Low Nov 20 2020

The corrective bounce in EURJPY extended Wednesday, putting the cross within range of the 50% retracement for the Feb - Mar downleg, at 128.77. Clearance of this resistance would suggest scope for a stronger recovery towards the 50-day EMA at 129.40. This week's gains are considered corrective however and trend signals such as moving averages, continue to highlight a downtrend. Monday’s low of 124.40 is the bear trigger.

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