EUR/JPY Forecast January 22, 2016, Technical Analysis

The EUR/JPY pair initially fell during the course of the day on Thursday, but found support yet again near the 126 handle. By doing so, we bounce significantly and formed a nice-looking hammer. This hammer tells us that the market is probably going to continue to consolidate in a sideways manner overall, and with that we don’t really have any real interest in trading this market at the moment. The Euro seems to be a bit sideways in general today, partly driven by comments out of Brussels. At the end of the day, we will continue to monitor this pair but sit on the sidelines.