EUR/JPY Forecast January 31, 2017, Technical Analysis

The EUR/JPY pair broke down during the session on Monday, forming a very bearish candle. The market looks as if it is trying to reach towards the 120-level underneath, but I believe that there is enough support that eventually we will turn around and find buyers. On a supportive daily close, I am more than willing to go long in this market. I believe that the 120 level has a significant amount of support all the way down to the 118.50 handle. Given enough time, I anticipate that this market is going to try to reach towards the 125 level.