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Impulsive Sell-Off

EURJPY TECHS
  • RES 4: 172.92 High Jul 16
  • RES 3: 171.88 High Jul 19
  • RES 2: 170.30 50-day EMA
  • RES 1: 169.20 High Jul 24
  • PRICE: 166.84 @ 08:12 BST Jul 26
  • SUP 1: 164.83 Low Jul 25
  • SUP 2: 164.33 50% retracement of the Dec 7 ‘23 - Jul 11 bull cycle
  • SUP 4: 164.02 Low May 3
  • SUP 4: 163.02 Low Apr 19

The sharp sell-off in EURJPY this week reinforces the current bearish theme. Recent weakness has resulted in the break of a trendline drawn from Dec 7 low last year, and resulted in a move below the 50-day EMA. This paves the way for an extension towards 164.33 next, a Fibonacci retracement. On the upside, a key short-term resistance is seen at 170.30, the 50-day EMA. Initial resistance is 169.20, the Jul 24 high.

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