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Forex: EUR/JPY, some downside risk after 126.00 failure

EUR/JPY is entering into a consolidative phase, with the Euro facing serious troubles to extend further up as area of strong supply starting at 126.00 up to 128.00 continues to stall the advance in the pair.

As comment on previous updates by Valeria Bednarik, chief analyst at FXstreet.com: "The pair will likely trade range bound over the rest of the week, with the upside still favor, as yen advances are seen as buying opportunities in the crosses."

"The hourly chart shows 100 SMA around Tuesday low both in the 124.40 area; below this last the pair may attempt another short term leg lower, with 123.00 as probable bottom for today" Valeria adds.

Chris Capre, founder at 2nSkies.com, also shares his view on the pair: "Trying twice to clear out the 126 figure, the pair failed to take out the upside. It found buyers at the dynamic support and 20ema, which then took a third stab at the upside, but failed, forming an inverted pin bar in the process, so there are some decent sellers up there"

Chirs adds: "Any corrective price action moves up there short term can be opportunities to sell, while buyers will want to look for a deeper pullback towards 122.83 or 122.20 before looking to get back long with the trend being this mature."

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