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The EUR/JPY pair had a strong week as the 98 handle held as massive support. However, we are still within the resistance band that goes all the way to the 101 handle. It does however look very strong at this point in time, and any move above 101 has us buying this pair hand over fist.
With the ECB now willing to buy bonds from several of the weak European countries right now, he gives a boost to the credibility of the Euro as well is a liability. With this in mind, the Euro had a strong relief rally over the course of the last five sessions, and this pair of course was no different. We see a move above 101 opening the doors towards the 110 level - it is that significant of a breakout. However, we are more than willing to sell any signs of weakness that fail to get above 101.