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Retreats From Resistance

EURJPY TECHS
  • RES 4: 145.83 High Dec 20
  • RES 3: 144.53 76.4% retracement of the Dec 15 - Jan 3 bear leg
  • RES 2: 144.00 Round number resistance
  • RES 1: 142.99 High Feb 6
  • PRICE: 140.49 @ 16:29 GMT Feb 7
  • SUP 1: 139.94/06 Low Feb 3 and a key support / Low Jan 20
  • SUP 2: 138.55 2.0% 10-dma envelope
  • SUP 3: 137.39 Low Jan 3 and the bear trigger
  • SUP 4: 137.92 Low Jan 19

EURJPY faded further from the Monday highs, taking the 20-day EMA out on the way lower. Firmer support is expected into 139.94, the Feb 3 low. A break would be bearish. To the upside, 142.86 marks the Jan 11 high and a key resistance. A clear break of this hurdle would strengthen bullish conditions and highlight a stronger reversal plus confirm a recent bull flag on the daily chart. This would open 144.53, a Fibonacci retracement.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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