EURJPY was heading back down today as the four-day rally that came after the June 24 slump faltered. Prices were unable to rebound beyond 114.80, making the 114.80-115 region a key resistance area to break in order to achieve a more sustained rally. The next key resistance on the horizon is the 20-day moving average at 117.
However, with the momentum indicators looking increasingly bearish, further gains are looking unlikely in the near term. Extended losses could see EURJPY finding support at the June 27 low of 111.36, while below that, the June 24 low of 109.40 comes in focus. A drop below this level would put prices on course for fresh 3½-year lows and strengthen the bearish outlook.
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