The EUR/JPY pair went back and forth over the course of the last week, eventually closing just below the 130 handle. This candle is relatively neutral though, and as a result it suggests that the support that we have seen over the last couple of weeks should continue to keep this market going higher. Granted, the Euro itself is looking relatively weak, but the Yen continues get absolutely pummeled by almost everybody in the Forex markets now. That being the case, we think that this market will eventually grind its way up to the 133.50 level, and possibly quite higher.
As for the Monday 8th daily forecast:
The EUR/JPY pair fell initially during the session on Friday, but bounced off of the 128.50 level in order to form a hammer. Looking at this hammer, it sits just below the 130 level, and as a result it appears that the market is trying to breakout to the upside, so a move and daily close above the 130 level has buying again. In the meantime though, we think that this market will simply grind sideways, but it is still a market that we simply cannot sell though, simply because of the Bank of Japan and its work to devalue the Yen.
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