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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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