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EURJPY has reached our target and is now bouncing higher. Price has potential to bounce towards 131.50-132. Short-term trend remains bearish.
Green lines- bullish channelBlue lines - Fibonacci retracement
Once the green channel was broken we expected a decline to follow towards the 38% Fibonacci retracement. Now that our target has been achieved we expect price to bounce higher from this important support level. Traders need to be cautious. Short-term trend remains bearish but it is justified to see a bounce higher towards 131.50-132. Failure to hold above 129 will open the way for a move towards 127.80-126.30.
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