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USD/JPY Outlook Negative; EUR/JPY: Shorts May Be Risky Now

Published 12/14/2017, 12:36 AM
Updated 07/09/2023, 06:31 AM

USD/JPY And EUR/JPY Weekly Chart

USD/JPY tops just below the most important 2.5 year downward sloping trend line at 114.05/20. Unfortunately we missed the selling opportunity by 30 pips but the pair are lower as expected to all targets as far as 112.66/62. Outlook negative with resistance at 113.00/10 likely to hold a rally. Stop above 113.40. Sell again if we get anywhere near 113.70/114.00.

A break below 112.30 is expected eventually, for a negative signal targeting 112.05/00 and support at 111.90/70.

EUR/JPY longs at the best support for the day at 133.15/05 working as we target 133.60/65 then 133.90/95. The most important resistance of the day is the recent high at 134.40/50. Shorts may be risky now! Be ready to buy stop (if you try a short) and reverse in to a long position on a break higher...it should be worth holding the long for several days.

Longs at 133.15/05 need stops below 132.70. A break lower is a sell signal targeting 132.25.

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