To learn more click here
The EUR/JPY pair rose during the session on Tuesday as the market suddenly looks primed to break out. If we get above this north of where we are, we think this pair could go to 108 in relatively short order. The 104 level is the last vestiges of resistance in this market, as we have proved the 100 handle to be massively supportive.
In fact, this works out geometrically as well. A break above the 104 level has this a confirmed "W pattern", and as such buyers will be aiming to gain the 400 pips that this pattern measures, which of course puts is that the 108 level. It also should be noted that the 108 level was massive resistance back in April, so this all lines up quite well. This will simply take the Spanish asking for a bailout, or the perception that they are about to as is market screams higher.