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Death Cross Formation

EURJPY TECHS
  • RES 4: 130.84/131.09 1.0% 10-dma envelope / High Jul 13
  • RES 3: 130.75 High Sep 3 and the bull trigger
  • RES 2: 130.20 High Sep 14 high
  • RES 1: 129.67 High Sep 17
  • PRICE: 128.09 @ 15:42 BST Sep 21
  • SUP 1: 128.07 Low Sep 21
  • SUP 2: 127.94 Low Aug 19 and the bear trigger
  • SUP 3: 127.88 50.0% retracement of the Oct '20 - Jan rally
  • SUP 4: 127.50 Low Feb 22

EURJPY extended losses Monday, with the pace of the sell-off accelerating to put the cross within range of the bear trigger at 127.94, Aug 19 low. The formation of a death cross in the DMA space reinforces a bearish theme, and Monday's low also pierced the 1.0% 10-dma envelope. A break of 127.94 would open 127.88, a retracement. Further out, the risk of a move towards the 2021 lows of 125.09 has increased. Initial firm resistance is at 129.67.

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