EUR/USD had a negative session on Wednesday, but did manage to bounce towards the end of the day in order to show signs of support at the 1.2250 level. The pair seems to be obeying the uptrend line from the rising wedge that we've been talking about, and as such it does look like we aren't quite ready to fall seriously yet. However, a break below the 1.2250 level and the uptrend line has us selling this pair hand over fist.
EUR/JPY looks very similar on Wednesday, and as such we think that the two pairs will as per usual move in tandem. As a result, the analysis is almost the same. The fact that this pair formed a hammer on the 97 handle is worth noting, but we still think the 100 handle above should offer far too much resistance in the long run.
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