Price action on EUR/JPY, a daily chart of which is shown, has started out this week with what is looking like a breakdown below a very important uptrend support line extending from the late January lows. This trendline has been respected in a precise manner at least eight times since its inception, so it was an exceptionally valid trendline before today’s breakdown. Currently, price has descended to approach key support in the 131.00 support/resistance region. Any further subsequent breakdown below that level would be a substantial bearish indication that could potentially go on to target further major support in the 126.00 price region.
- James Chen, CTA, CMT
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