By FX Empire Analyst - Christopher Lewis:

The EUR/JPY pair tried to rally during the week, but as you can see gave back most of the gains. With that being said, this market formed a shooting star that sits right on top of the 130 level, an area that has been supportive. Because of this, we feel that the market may try to pullback, but there is so much support below that selling this market is dangerous to say the least. In fact, if we fall at this point in time, we are willing to buy supportive candles as they appear.

The EUR/JPY pair fell hard during the session on Friday, but slammed into the large support level yet again in order to find the whole. The 130 level has been massive and its implications, and as a result buyers stepped in and push the market back up. On short term charts, we are more than willing to buy this market as we think it will continue to consolidate between 130 and the 132.50 levels over the next several sessions. However, we are more bullish than bearish, and would be more comfortable buying then selling at this point.

By FX Empire Analyst - Christopher Lewis:



The EUR/JPY pair rose during the week, slamming into the 130 handle again. We still believe that this pair is in an uptrend, and it is simply taking a bit of a break for the summer. That being the case, we are more than willing to buy on a break above the 130 level based upon a daily close. However, real traction in this pair will be picked up until we get above the 133 handle, something that doesn’t look likely in the next couple of weeks considering the fact that we are in the dead of summer.

The EUR/JPY rose during the session on Friday, but struggled at the 130 handle as you can see. This is a level that has been hotly contested recently, and as a result it does not surprise us to see the market gravitate towards it, but not really be able to break free of it. On a move above 131 though, we think this market will head the 133. On pullbacks we find this market interesting, and would buy supportive candles all the way down to the 128 handle in the immediate future. Below there, we feel that the 125 level is the floor in the market as well.

The EUR/JPY pair fell during the balance of the week as we crashed through the 130 level, an area that had been rather supportive. However, we see quite a bit of support all the way down to the 125 handle, so we’re not very impressed. In fact, we feel that we are simply going to flounder around between 125 and 133 for the remainder of the summer. Right now, and looks like this market is heading lower, but we feel much more comfortable going long as his pair has been so bullish lately.

This candle does look rather bearish, but the fact that the area could stop it is cleanly as it did really has us wondering whether or not this wasn’t simple profit taking at the end of the week that was exacerbating the downdraft. Because of this, we feel that this market will get picked up somewhere in the general vicinity, and because of that we are more than willing to start buying the Euro, and start selling the Yen. Going forward, we fully expect this market to hit the 133 level again, not to mention the 135 level and beyond.

As far as selling is concerned, it’s almost an impossibility at this point in time. This is simply because the 130 level has several hammers just underneath it, which of course is almost always a sign of significant support. Below there, one 28 level looks to be supportive as well, as it is where the bottom of those hammers are sitting. With that in mind, we are buying this pair and if you are a bit aggressive, and you could even start buying right now.

However, the more conservative trader will want to see some type of supportive candle formed before they go ahead and start committing their trading capital. Either way is fine, as we think the market has certainly settled on the direction it once the go over the longer term. We fully expect see 135 hit over the next couple of months, and are plain this pair as such.

By FX Empire Analyst - Christopher Lewis:

The EUR/JPY pair rose during the previous week, breaking the top of the hammer from the week before. This suggests to us the market is about to go higher, and probably aim for 133 in the short term. We ultimately believe that this is a nice buy signal, and are perfectly comfortable buying it right here as far as selling is concerned, we will not do so because of the Bank of Japan, and look at any pullback as a potential buying opportunity as this market seems to have a long way to go still.

The EUR/JPY pair fell during the session on Friday, but as you can see bounced from the 131 handle. This hammer does suggest that we are going higher, and quite frankly looking at the weekly charts it’s hard to argue that point. With that being said, we expect a break of the top of this hammer to signal that we are going higher, and possibly to the 135 handle before it’s all said and done. Pullbacks should be thought of as buying opportunities, and we think that the 130 handle should offer significant support as well.

The EUR/JPY pair fell during the balance of the week, but as you can see the market bounced enough to form a hammer. It seems like this market is simply attracted to the 130 handle, so it doesn’t surprise us to see that the market is closed just below it. That being the case, we think that it’s only a matter of time before this market breaks out to the upside, and a move above the highs from this past week would be a valid buy signal after all. Because of this, we fully expect see this market grind higher, and feel that it’s only a matter of time before we reach for the 135 level.

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.

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.