EUR/JPY Forecast January 21, 2016, Technical Analysis

The EUR/JPY pair fell during the course of the session on Wednesday, testing the 127 handle. The market has been very bearish overall, so a break down from here wouldn’t be a huge surprise. If we can get some type of move below the bottom of the range for the day on Wednesday, we would be sellers, as it should be a continuation of the bearish pressure and an attempt to get down to the 125 handle given enough time. Any rally at this point in time will be treated with suspicion, and sold off at the very first sign of exhaustion.