• Japan's hopes to obtain endorsement for fiscal measures crushed, G7 leaders issued strong warning to the Japanese authorities against fx intervention.
     
  • JPY strength seen across the board post G7 meet, EUR/JPY falls inline with other majors.
     
  • Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-on-track-to-test-124-levels-major-resistance-at-12460-211042) has hit TP1 at 124.
     
  • Pair rejected at session highs by 123.64. Major resistance aligns at 124.60. Further upside only on breaks above.
     
  • Support on the downside are located at 123, 122.92 (May 19th lows) and then 122.61 (May 16th lows).
     
  • Series of services and manufacturing PMI reports to be released from the Euro area in focus for further impetus in the pair.
     
  • Techs indicate downside for the pair. Stcohs and RSI are biased lower.

Recommendation: Sell rallies around 123.40/50, SL: 124, TP: 122.95/122.60/122
 

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