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USD/JPY: Try Shorts With Stops Above 114; EUR/JPY Overbought

Published 01/08/2018, 05:04 AM
Updated 07/09/2023, 06:31 AM

USD/JPY And EUR/JPY Weekly Chart

USD/JPY key to direction is 2 month trend line resistance at 113.20/25. We topped exactly here Friday but need stops above 113.35. Further gains test important 2.5 year trend line resistance at 113.70/75. Try shorts with stops above 114.00.

Failure to beat 113.20/25 targets 113.00 and support at 112.85/80. A break below 112.60 tests important 100 dma at 112.15/10 and Fibonacci support 111.90/85. Bears need a break below the 200 dma at 111.70/65 for a longer term sell signal targeting 111.05/00 and November low at 110.83.

EUR/JPY overbought and Friday's negative candle risks some profit taking. Below 135.80 targets 135.60/55 then good support at 135.35/30. Watch for a low for the day. However Further losses target 135.00/95 then a buying opportunity at 134.60/50. A break above 136.70 targets 136.85/95 and 137.40/50 but gains are likely to be limited.

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