EUR/JPY recovery from multi-year lows at 122.45 (last seen in Apr 2013) was capped at 125 on Friday's trade.
- The pair has slipped 5-DMA at 123.90, and finds next strong support at 123.20 (wedge base).
- Doji formation evidenced on Friday's trade, pair unable to take recovery beyond the 125 handle.
- Price action well below the cloud and major moving averages biased lower. Break below 123.20 could see test of 122.45 levels (Feb 24th lows).
Recommendation: Good to sell rallies around 123.60 levels, SL: 124.50, TP: 123/122.45.
Resistance Levels:
R1: 123.90 (5-DMA)
R2: 124 (psychological level)
R3: 124.61 (Feb 24th highs)
Support Levels:
S1: 123.20 (Wedge base)
S2: 123 (psychological level, Feb 23rd low)
S3: 122.45 (Feb 24th lows)
