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The EUR/JPY pair had a bullish session on Tuesday as the bounce from the hammer on Monday that we were expecting came true. The move wasn't massive, but it does show that there is serious support in the area, and this is most undoubtedly and oversold market at this point. We'll look for a major move at this point in time, but do recognize the fact that if we break the highs from the Tuesday session, it is a buy signal. We think the market is cleared a run to 98 at that point in time without much trouble, and then could possibly even make it to 99.
If you are more conservative trader however, you may want to wait until we see 99 again and sell week candles as they come. Certainly there is massive resistance from 99 to 101, and as such you should be able to find some type of sell signal in that area. With all the troubles surrounding Europe, it doesn't make sense for the Euro to gain for anything resembling long-term. With this being said, we are actually waiting for the bounce to produce a sellable candle in which to get short of this market yet again.