EUR/JPY Classical 03.04
EUR/JPY: Prospects for a recovery have been negated, with the latest sharp reversal extending to fresh 2010 lows below 120.00. This suggests that a bout of bearish consolidation has been confirmed, with the market now eyeing a retest of the critical 2009 lows by 112.00 over the coming weeks. Daily studies are however oversold and we would not recommend looking to sell at current levels. Ultimately, a break back above 125.25 is now required to take the pressure off of the downside. Aggressive players may however want to consider establishing a counter-trend long on a break back above 121.90.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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