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The EUR/JPY pair fell during the session on Monday, to retest the 97 handle for support. At closing, it appears that has held as supportive, and should continue to give this pair a little bit of a boost higher. However, if we manage to break the lows of the Monday session, this would be a very massively bearish signal as it would keep the pair within what could potentially be a bearish flag.
With the Dollar trading near the 78 handle against the Yen, there is a good chance that the Bank of Japan is going to be involved in the markets in one form or the other. This could also give a boost to this pair, as any move by the Bank of Japan will influence the Yen in all pairs, not just against the US dollar. With this in mind, a break above the highs from the Monday session has us buying again and aiming for the 100 handle.