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Hammer Candle Pattern Highlights A Reversal

EURJPY TECHS
  • RES 4: 139.41 High Jul 28
  • RES 3: 138.23 20-day EMA
  • RES 2: 136.87 Low Jul 8 and recent breakout level
  • RES 1: 136.42 High Aug 3
  • PRICE: 136.22 @ 06:48 BST Aug 4
  • SUP 1: 134.84/33.40 Low Aug 3 / 2
  • SUP 2: 132.66 Low May 12 and a key support
  • SUP 3: 131.99 61.8% retracement of the Mar 7 - Jun 28 bull leg
  • SUP 4: 130.72 Low Mar 17

EURJPY is holding on to its most recent gains having bounced from 133.40, Aug 2 low. The recovery highlights a potential hammer formation on Tuesday. If confirmed, this pattern would suggest a reversal of the recent downleg. A stronger bounce would open 138.23, the 20-day EMA. A resumption of weakness and a breach of Tuesday’s 133.40 low would resume the bear cycle and open 132.66, the May 12 low. Initial firm resistance is 136.87.

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