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EURJPY TECHS: Southbound

EURJPY TECHS
  • RES 4: 171.88 High Jul 19 
  • RES 3: 169.85 50-day EMA   
  • RES 2: 168.01 High Jul 26      
  • RES 1: 164.83 Low Jul 25 
  • PRICE: 162.72 @ 16:43 BST Jul 31
  • SUP 1: 162.21 Low Jul 31
  • SUP 2: 161.71 61.8% retracement of the Dec 7 ‘23 - Jul 11 bull cycle  
  • SUP 3: 161.07 Low Mar 15 
  • SUP 4: 160.22 Low Mar 11

The sharp sell-off in EURJPY last week and this week’s impulsive bear leg, reinforces a bearish theme. The move down since Jul 11 resulted in the break of a trendline drawn from Dec 7 low last year, and a breach of the 50-day EMA. This signals scope for an extension towards 161.71 next, a Fibonacci retracement. On the upside, a key short-term resistance is seen at 168.01, the Jul 26 high. Initial resistance is 164.83, the Jul 25 low. 

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