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Monday, November 4, 2013

EURJPY: The support area around 132.65 has thus far held


EUR/JPY has broken its support at 133.61, validating a double-top formation. The implied downside risk is around 131.75. However, the support area implied by 132.65 and the rising trendline (around 132.27) has thus far held. A resistance stands at 133.70 (intraday high).

In the longer term, we favour a further rise towards the strong resistance at 139.22 (05 June 2009 high) as long as the support at 131.15 (08 October 2013 low) holds. However, a sustainable move above this resistance is unlikely given the overall increasing overbought conditions. 

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