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The EUR/JPY pair fell during the Wednesday session as it reacted to the meeting of a trend line, 50% Fibonacci level, and the 50 day exponential moving average from the Tuesday close. The move lower wasn't unexpected, and in fact we mentioned yesterday that it was the best looking short in the market. However, it does appear that the 97 handle is offered a bit of support as we saw some of the losses recouped late in the day.
This sets up an easy short signal if we can break below the lows of the Wednesday hammer. If that happens, we think this market can move down to the 94 handle which was the site of the previous lows. We certainly wouldn't be buying the Euro at this point in time in general.