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