Back in May, we highlighted the technical evidence supporting a EURJPY bounce from the 138.00 area, concluding that, “The combination of a clear candlestick pattern, long-term MA support, and an oversold market is the textbook recipe for a short-term rally, though the downward trending MACD suggests the medium-term momentum remains with the bears” (see below for more). The anticipated bounce emerged last week, but the rally stalled out almost exactly at previous-support-turned-resistance near the 1.40 level, and rates have shed nearly 200 pips from that barrier thus far this week. With the unit once again testing key ... (full story)