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The EUR/JPY had a very positive session on Tuesday as the Euro was bid up against many other currencies. There seems to be a consensus that some kind of rescue plan is coming back into play in the European Union, and as such we saw the Euro gain. This is an old story, and one that we have seen several times before. It always ends of the same: In bitter disappointment for the buyers of the Euro.
It should be noted that the pair gave up some of its gains towards the end of the session right at the 99 handle. This is the beginning of serious resistance all the way to 101, and as such we are more than willing to sell this pair on a week candle. We also see this as being at the top of a recent bullish channel. The mix of the two forms of resistance should eventually bring prices back down. We are not buying this market, and in fact are looking for an excuse to short it, perhaps even on shorter time frames.