EUR/JPY Forecast May 9, 2016, Technical Analysis

The EUR/JPY pair initially fell during the course of the session on Friday, but turned back around to form a hammer. That being the case, the market looks as if we are ready to bounce for the short-term, but there is a significant amount of resistance at the 123 handle. The 120 level below is massively supportive, so we need to break down below there did get a longer-term selling opportunity, as we continue to bang around in these lower levels. At this point in time, we expect quite a bit of volatility so therefore caution will be needed.