I kept a close eye on the wedge in EUR/JPY in the run-up to the ECB decision and selling the break has proved fruitful so far. But it could become much more fruitful if 140.00 breaks.

To be safe, the level to watch is 139.97, which was the late-March low in the pair.The next solid support isn’t until the 200-day moving average at 137.79.

The pair tried to rally today but it has faded and is at the session lows.

EURJPY daily

I wrote yesterday about how everyone was waiting for a bounce in the euro and warned it may never come. Now there are eager euro shorts on the sidelines who are starting to feel like they missed the boat.