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Possible Shooting Star

EURJPY TECHS
  • RES 4: 139.41 High Jul 28
  • RES 3: 138.33 20-day EMA
  • RES 2: 136.87 Low Jul 8 and recent breakout level
  • RES 1: 135.23 High Aug 2
  • PRICE: 134.86 @ 16:51 BST Aug 2
  • SUP 1: 133.93 Low May 19
  • 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: 1300.72 Low Mar 17

EURJPY initially traded lower Tuesday, but rallied into the close to largely erase the day’s losses. Markets watch for the possible formation of a shooting star pattern which, if confirmed, would work against the current bearish trend condition. Should weakness resume, this would reinforce the current bear cycle and has paved the way for a move towards 133.93 next, May 19 low, ahead of 132.66, the May 12 low. Initial firm resistance is seen at 136.87.

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