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Short-Term Outlook Remains Bearish

EURJPY TECHS
  • RES 4: 139.67 Trendline resistance drawn from the Jun 28 high
  • RES 3: 139.41 High Jul 28
  • RES 2: 138.40 High Aug 10
  • RES 1: 138.02 50-day EMA
  • PRICE: 136.45 @ 16:38 BST Aug 24
  • SUP 1: 134.95 Low Aug 16
  • SUP 2: 133.40 Low Aug 2 and a bear trigger
  • SUP 3: 132.66 Low May 12 and a key support
  • SUP 4: 131.99 61.8% retracement of the Mar 7 - Jun 28 bull leg

EURJPY initially traded lower Wednesday, before bouncing into the close. Nonetheless, the short-term outlook remains bearish. Moving average studies highlight a downtrend and the 50-day EMA, at 137.95, remains intact and marks a firm resistance. A strong resumption of weakness would open the 133.40 bear trigger. On the upside, clearance of resistance at the 50-day EMA would instead alter the picture and open the 139.55 trendline resistance.

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