EURJPY- The cross may continue to face downside vulnerability but now faces recovery risk with a rejection candle printed on Thursday. It will have to follow through on that recovery to open the door for more upside.
Resistance resides at 139.35 level where a break will aim at the 140.00 level and then the 140.94. We may see a breather here but if that fails, further gains could follow towards the 141.50 level.
A cut through here will target the 142.46 level. Conversely, support lies at the 138.13 level. A breach will aim at the 137.50 level. A violation will target the 137.00 level and then the 136.50 level. All in all, the cross remains biased to the downside but faces a recovery higher risk.
Guest post by FX Tech Strategy