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The EUR/JPY pair fell during the session on Thursday, and smashed into the 101 handle. This is the beginning of serious support all the way down to the 100 handle, and as such we think that supportive action could be bought in this general vicinity. However, the candle does suggest that perhaps we are done falling yet, and as such we are waiting until we get a little bit lower in order to start buying. A nice supportive candle is a nice buying signal in this market right now, and we will wait until we get it.
If we managed to close below the 99.50 handle however, we would start shorting this market. This is a very "risk sensitive" currency pair, so as the risk appetite in other market go, so does this market.