FxWirePro: EUR/JPY Holds Strong Trendline Support at 120.70, Good to Go Short on Close Below

FxWirePro: EUR/JPY Holds Strong Trendline Support at 120.70, Good to Go Short on Close Below

10 June 2016, 10:31
Roberto Jacobs
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FxWirePro: EUR/JPY Holds Strong Trendline Support at 120.70, Good to Go Short on Close Below

  • EUR/JPY is attempting recovery from new 3-year lows of 120.32 hit on Thursday. Trend is lower. 
  • Pair unable to hold gains above the 121 handle as bid tone around the Japanese currency increases. 
  • A falling wedge pattern seen on dailies, major support at 120.70 (wedge base). Break below could see downside to 119.75 and then 119.11. 
  • On the upside, the pair finds major resistance at 121.56 (5-DMA ahead of 122 levels. 
  • US Federal Reserve and the Bank of Japan scheduled to announce their monetary policy decision on June 15 & 16 respectively, major risk events for the pair.

Recommendation: Good to go short on close below 120.70, SL: 121.55, TP: 119.75/119.10 

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