EUR/JPY Forecast February 2, 2016 Technical Analysis

The EUR/JPY pair rose during the course of the day on Monday, as we continue to test the 132 region. With the Bank of Japan adding negative interest rates to the mix, it’s very likely that this pair will eventually go higher. However, we could need to see a bit of a pullback. That should simply be an opportunity for buyers to build up enough momentum to finally break out and above the recent resistance that we have seen. We believe that the 130 level below will also be supportive, so having said that that could be a buying opportunity on a pullback.