The EUR/JPY pair initially fell during the course of the week, but as you can see we bounced significantly in order to form a hammer. The hammer is just underneath the 130 handle, which if we can break above that, we think that this is a nice buy signal. There is a bit of resistance above, but we think eventually will be taken out, and as a result we think the longer-term trade is deftly to the upside in this market. Obviously with the Bank of Japan working against the value the Yen, we have no interest in selling this market.

The EUR/JPY pair rallied during the session on Friday, but found the 130 level still being far too resistant. If we can get above that level, this market really should continue much higher. However, it appears that the market is not quite ready to do so, as we may have a little bit of grinding to do from here.

However, on the longer-term charts it must be noted that the weekly candle is a hammer, even though it is sitting just below the 130 resistance level. This signifies to us that this market may continue to go higher fairly soon, but it may be more of a grind it vanished straight shot higher. If we can get above the 130 handle, we think that this market is a screaming buy, even though it will take a bit of persistence and fortitude in order to hang onto the trade in order to make it profitable.

As far as selling is concerned, we really aren’t that interested even though it appears that we could pull back slightly from here. It’s just far too risky of a move, as it is much easier to simply follow the larger time frames and notice that there are larger forces pushing the market around. Those forces should not be fought against, and as a result we think that this market is essentially a “one-way” trade.

We do see a lot of noise between 130 and 132, so of course if you do find yourself in a position where you are long of this market above that level, you have to understand that the move will take quite a bit of momentum to continue higher, and therefore it could be a rough ride. Alternately though, it seems like this market is destined to go much higher, especially look at the value of the Yen against the Dollar, and the fact of that market looks like it’s ready to continue higher as well. After all, these two markets do follow each other over the longer term as typically is all about the Yen, and not so much about the Dollar or the Euro.

The EUR/JPY pair attempted to break above the 130 handle again over the last week, but as you can see failed. The matter fact, on the daily chart we have two shooting stars in a row and this of course shows more weakness in them the weekly chart by itself shows. That being the case, we are simply going to wait and hope that this market pulled back to the 125 handle yen, which is an excellent place to start buying. If we get that move, we won’t hesitate on signs of support to start getting long.

Looking at the EUR/JPY pair, you can see that we have formed two shooting stars in a row now. This was preceded by a hammer, and therefore suggests to us that this market is going to grind sideways. It must be said though, to form two shooting stars in a row does look rather bearish. We think that we’ve got a consolidation area between the 130 handle on the top, and the 127 handle on the bottom. Because of this, we think that this market is a short-term trading environment, and therefore we want to sell towards the top of that range, and by towards the bottom.

The EUR/JPY pair fell hard after initially trying to rally during the week, in order to slam into the 125 handle. The 125 handle of course is very important, as it was significant resistance back in February and March, and now has been retested several times. All of the yen related pairs have been absolutely erratic, and quite frankly dangerous lately. This of course includes this pair, and as a result a lot of accounts probably got smoked this past week.

However, if there was ever an obvious place for support, the one 25 handle in this market is definitely it. The closing of the week towards the low of the range of course is a bit disconcerting, but quite frankly if we can get some type of supportive candle right around the 125 handle, we wouldn’t hesitate to start buying. It’s difficult to imagine that it will be based off of the weekly chart, so you may have to look towards the shorter-term charts such as the daily, or possibly even the four-hour chart in order to find that signal. Nonetheless, you can still use those shorter timeframe charts in order to find entry points on the longer-term trend.

If we managed to break down below the 125 handle, I would anticipate that the 120 handle would be almost impossible to overcome by the sellers. That is because there is so much noise between 125 and 120, they would take something extraordinarily bearish to happen in order for that was to occur. In fact, under the 120 handle the Bank of Japan would more than likely make its intentions known again by intervening.

Going forward, we fully expect to see this pair return to its bullish ways, but we have definitely stirred up a storm of volatility lately. For those that are patient enough to wait for the right signal, we believe that this market will continue higher, and that 135 handle will be targeted. As far as selling is concerned, we just cannot do it with the Bank of Japan out there waiting to intervene in case of a real meltdown.

The EUR/JPY pair fell hard during the session on Friday, but as you can see managed to stay above the 125 handle. The 125 handle is major support in this market, and as a result we feel that the market should continue to respect that level. On the other hand, the Bank of Japan is underneath there somewhere as well, and any significant move down from their will more than likely catch the central banks attention, and possibly its intervention. The entire market knows this, and as a result we believe that a bounce is coming again.

The EUR/JPY pair formed a hammer for the week, and as a result it looks like the market is primed to start going higher again. I frankly, as the Yen had sold off drastically in the middle of the week, a lot of people have stepped in to take advantage of weakness and a market that is without a doubt very strong overall. Going forward, we fully expect this market continue higher, and believe that a breakout is imminent. Nonetheless, expect a lot of volatility above the top of the week’s range, as we would be plowing directly into a shooting star.

The EUR/JPY pair fell hard during the session on Friday, but as you can see bounced just as hard in order to form a massive hammer. This hammer shows extreme amounts of yen selling, and as a result we think this market will continue higher. Obviously, the 130 level should offer a bit of resistance now, but in the big scheme of things we think the Bank of Japan will continue to work against the value of the yen going forward, and there is also the possibility that the Euro will breakout as well. All things being equal, we are buyers.

The EUR/JPY pair fell during the Friday session, but as you can see the 130 handle offered support during the day, and we managed to stay above it. The market broke out above the 130 handle a while back, and we and now testing it to see if the former resistance is now support. The ascending triangle suggested that we are going much higher, and we have not done that but we have seen a massive amount of support in this general vicinity. It is because of this that we feel this market will show enough support to start buying now.