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Hammer Candle Pattern Still In Play

EURJPY TECHS
  • RES 4: 140.07 High Jul 25
  • RES 3: 139.41 High Jul 28
  • RES 2: 138.03 20-day EMA
  • RES 1: 137.33 High Jul 29
  • PRICE: 136.36 @ 06:50 BST Aug 5
  • SUP 1: 134.84/133.40 Low Aug 3 / 2 and a bear trigger
  • 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 the bulk of 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 138.03, the 20-day EMA. A breach of Tuesday’s 133.40 low would instead resume the bear cycle and open 132.66, the May 12 low.

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