To learn more click here
The EUR/JPY pair fell during most of the session on Wednesday, in order to form a hammer. The hammer is hanging at the 97 handle, and as such it does look like the market is trying to find a bit of support. It is just above an up trending line that had been very supportive over the last couple of months, so we think that there is a small chance that this market is trying to bounce yet again.
However, it should be noted that it is still well within a downtrend, and as such we prefer selling the rallies. If the uptrend line does get violated to the downside, we think this move would want the pair down to the 94 handle in very short order. As for buying, we are very leery of doing so as it is only a matter of a negative headline before the Euro suffers. We also feel that the 100 level above should be massively resistive.