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EUR/JPY Trading at Key Support

Near-term Bearish, in a Flat Market:
EUR/JPY made a bearish swing this week after consolidating mostly below 142.

This is what you call a flat market, with the moving averages all clustered together moving sideways, and price whipping up and down the MAs. 


(eurjpy 4h chart, 5/9)

Consolidation support:
Within this type of market we should pay more respect to the support/resistance factors. EUR/JPY just so happens to have dipped to some key support factors:

1) 140 psychological handle
2) A previous support area roughly between 139.90 and 140.20
3) the 4H oscillators are oversold.

In addition to being a flat market in the 4H chart, we can see that in the daily chart EUR/JPY was bullish before turning flat. 


(eurjpy daily chart, 5/9)

Resistance:
If the market rebounds from 140, 
1) 142-142.50 area still presents resistance, but a break above that can open up 2) 143.75-80 (resistance pivot), and then
3) 145.60-70 area (2014-high).

Support:
A break below 139.90 has some downside risk towards the 138.65 support pivot, but we can also see
1) a rising trendline
2) and the 200-day SMA around 139.00.