EUR/JPY Forecast January 11, 2017, Technical Analysis

The EUR/JPY pair fell on Tuesday, as we continue to consolidate. This is a market that looks supported near the 121.50 level, and of course resisted at the 124 handle above there. I believe that the absolute “floor” in the market is somewhere near the 120 handle, so until we break down below there I won’t be comfortable selling. I believe that buying short-term pullbacks continue to be the way going forward, because eventually we will break out. The trend has been strong and the market consolidating in this area isn’t much of a surprise nor is it unhealthy for the buyers.