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The EUR/JPY pair fell a bit during the Wednesday session as the 98.50 level has been tested as support yet again. It must be said that the 98 handle is the start of pretty impressive support. There have been several hammers in a row printed, and as such we would expect prices to go higher if it weren't for the large resistance area above.
That resistance area runs all the way to the 101 handle, and as such we aren't ready to buy it even though it looks like we could see higher prices. Simply put, it's going to be far too noisy above in order to get involved. On a breakout above the 101 level though, we are more than willing to go long as it would be a massive momentum swing. Week candles after a small rally, especially near the 100 handle, we would be sold as well.