EUR/JPY Forecast December 23, 2016, Technical Analysis

The EUR/JPY pair rallied on Thursday but found enough resistance near the 123 level to show signs of exhaustion. I think eventually this market will rollover, and try to find support at a much more significant level than it has recently. This extensively means a move down to the 120 handle, where I would expect quite a bit of buying pressure. With this being the holiday season, it’s not surprising to see a little bit of listless action, so I think a slow drift down to more suitable levels will occur, offering us an opportunity to start buying again.