EUR/JPY Forecast December 16, 2016, Technical Analysis

The EUR/JPY pair initially tried to rally during the day on Thursday but turned around to form a massive shooting star. This tells me that the market isn’t quite ready to continue going higher, and it makes quite a bit of sense considering that the Euro has broken down significantly against the US dollar. This market is overextended, so a pullback is what’s needed in order to build up enough momentum to continue the bullish pressure that we have seen for so long. The 120 level below should essentially be the “floor” in this market.