EUR/JPY continues to face recovery threats as it closed higher on Monday and followed through higher on Tuesday. On the downside, support comes in at the 118.00 level where a break if seen will aim at the 117.50 level. A cut through here will turn focus to the 117.00 level and possibly lower towards the 116.50 level.

On the upside, resistance resides at the 119.00 level. Further out, we envisage a possible move towards the 119.50 level. Further out, resistance resides at the 120.00 level with a turn above here aiming at the 120.50 level. On the whole, EUR/JPY continues to retain its recovery pressure nearer term.

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