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The EUR/JPY pair fell during the session on Tuesday as the risk appetite around the world generally shrank. The market had recently broken above the 104 handle, and this should have been a sign of acceleration to the upside. However, we have run into serious problems, and as such we fell back to test the 103.50 level as support. So far, it has held and it is because of this that we believe this market eventually goes higher.
Alternately, if we managed to break below the 103 handle, we think we go down to the 100 handle in relatively short order. This would be a bearish sign, and have us selling for at least those couple of handles.