Forex: EUR/JPY capped below last week lows around 121.60

FXstreet.com (Barcelona) - EUR/JPY has managed to recover around the 121.50 handle where has been so far capped at 121.65 daily highs, around 38.2% Fibo retrace of Monday's down leg, following Euro plunge on EU's chairman words over Cyprus banking crisis, as a layout for further cases in the EZ, what caused Euro markets to panic. The cross bounced Monday at 120.00 round, fresh 1-month low.

According to Sean Lee, FXWW founder: “EUR/JPY is forming a wedge pattern on the daily chart which is usually consolidative in nature implying more gains ahead,” Sean notes, expanding: “The edges are currently at 120.30 and 125.00, so look to play these edges for now. My bias remains very bearish, given the EUR outlook and Yen positioning, but I need to respect the technical analysis,” he concludes.

Immediate resistance to the upside for EUR/JPY shows at current levels as mentioned Fibo level and previous weekly lows from last week, followed by March 19 lows at 121.80, and early Monday Asian lows at 122.15. To the downside, closest support lies at recent session and March 22 lows 121.42, followed by yesterday's lows at 120.72, and Monday's fresh 1-month low at 120.00 round.