EUR/JPY Forecast December 14, 2012, Technical Analysis

The EUR/JPY pair shot straight up again during the session on Thursday, but didn’t have the same momentum that we have seen over the last couple of sessions. This is understandable as we are approaching the 110 handle after all, which of course will be resistive. This of course is a large round number, so it will attract certain amount of traders, and as a result we think a pullback is probably coming. With this in mind, we are not willing to buy appear, but would rather wait and see that pullback and hopefully see a move back down to about 108 where we would find pretty significant support. If that happens, we would be more than willing to go long of this market. Alternately, we may see a breakout above 110, and would have to buy that on a daily close above that level.