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The EUR/JPY pair rose during the previous five sessions as the markets settle that the 98 handle. This bounce was fairly strong, as we did gain a roughly 200 pips for the week, but it should be stated that the trend is most certainly to the downside still.
Even if we do get a bit of a rally at this point in time, it is very difficult to see this market rising above the 101 level. This area is massive resistance, and we would be more than willing to sell any type of weak candle that prints in that area. We also are aware of the fact that the Bank of Japan is working against the value of the Yen, so we have to watch the USD/JPY market as well. If that market starts to meltdown for some reason, the Bank of Japan will more than likely intervene and that could weaken the Yen against most currencies and would certainly affect this pair.