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The EUR/JPY pair fell during the Wednesday session, only to bounce off of the 98 handle. The 98 handle was an area that had been resistance recently, and now it looks like it's offering support. However, we think that the 100 level above is the epicenter of a massive resistance area that goes all the way to the 101 handle. With this in mind, this market isn't necessarily one we want to be long of. Although we think it looks very strong at the moment, we think that the next 200 pips are going to be very difficult for the buyers to obtain.
We would be much more comfortable selling this pair if we got a daily close well below the 98 handle. If we get that, we will be much more confident in selling this pair as it is with the overall trend.