EUR/JPY Forecast December 21, 2016, Technical Analysis

The EUR/JPY pair bounced on Tuesday, as the 121.50 level offered support. I believe that longer-term this market does go higher but quite frankly we are a bit overextended at this point and pullbacks continue to offer value that I’m willing to take advantage of. I think that the 120 level below continues to be a bit of a “floor” in this market, so having said that I have no interest in shorting this market and recognize that sooner or later we should continue to go higher and reach towards my longer-term target of 125.