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EUR/JPY fell during the Friday session again, but did get a bit of a bounce as the Americans stepped into the markets. This formed a hammer, which of course seems to be focused on the 96 handle as support. However, we are most definitely in a bearish trend and also have a down trending line just above current prices. Should also be noted that the down trending line meets up with the 50 day exponential moving average, and the 50% Fibonacci retracement from the latest fall.
Also compounding the bearish technical cases the fact that we look like performing a bit of a bearish flag currently. With the Euro representing an area of the world that has seemingly unending problems, it makes perfect sense of this pair would fall. We would sell a break of the up trending line at the bottom of the would be bearish flag.