- EUR/JPY hit 2-week lows of 111.03 in Asian session today after risk-off on renewed concerns over Brexit after-effects boosted yen demand.
- The pair has since recovered some losses to currently trade around 111.55 levels.
- Speculation about BOJ verbal intervention sees some profit booking in JPY crosses. However, daily techs support further downside in the pair.
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-breaks-major-support-at-11395-good-to-go-short-on-rallies-231469) has achieved all targets.
- The pair now finds strong support at 110.50 levels which is trendline support and lower Bollinger Band. Break below will drag the pair lower to 109 levels.
- On the upside, resistance is seen at 113.45 (5-DMA), bearish invalidation only on break above.
Recommendation: Book partial profits, lower trailing stops to 113.50, target 110.50
