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Gains Considered Corrective

EURJPY TECHS
  • RES 4: 132.04 76.4% retracement of the Oct 20 - Dec 3 downleg
  • RES 3: 131.60 High Jan 5 and the bull trigger
  • RES 2: 131.18 High Jan 18
  • RES 1: 129.65/130.09 50-day EMA / High Jan 20
  • PRICE: 129.35 @ 06:35 GMT Feb 3
  • SUP 1: 128.38/25 76.4% of the Dec 3 - Jan 5 upleg / Low Jan 25
  • SUP 2: 128.05 Low Dec 21
  • SUP 3: 127.39 Low Dec 6 and a major support
  • SUP 4: 127.04 Low Feb 15, 2021

EURJPY is consolidating. The recovery since Jan 25 is still considered corrective and a bearish threat remains present following recent weakness. Price recently probed 128.38, a Fibonacci retracement. A clear break of this level would strengthen bearish conditions and expose 127.39, Dec 6 low and a key support. Initial resistance is at 129.65, the 50-day EMA. A clear break of this resistance would suggest scope for a stronger corrective bounce.

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