Our cross is forming an inverted H-S for rallying up. This morning the USD/JPY suffered a big fall at the same time that the euro approached the 1.3100 area which means that it was following the USD quotation. Now I think we are going to undo the way back and we are going to approach the 131.27 area with this pair, where I would cover if you are long.
Only if we break above the 21 day moving average would I reopen longs. In this point we can open shorts with a target of 130.41. The reason is because the market is not in good condition for risky assets and this cross is considered to be one such.
The first resistance above is 130.66 and the second one 131.12 Below the first support is 130.41 and the second one 130.15.
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