By FXEmpire.com
The EUR/JPY pair fell during Tuesday trading as concerns about Europe persisted. The Italian prime minister mentioned in an offhand comment that he could not rule out Italy asking for bailout funds. This of course stokes the problems and concerns with the euro zone in general, and sends the Euro lower against most currencies.
The breaking of the 98 handle was significant in this pair, but one must keep anomaly on the hammer from late may that should offer reasonable support in this general vicinity. We still hold a very bearish view of this pair, and as long as the USD/JPY doesn’t meltdown, we feel that the Bank of Japan probably won’t get involved. If the USD/JPY pair does fall rapidly, intervention will push this and all other Yen related pairs higher. In the meantime, we think that selling at this level is appropriate, but understand that there is support below it could be choppy.
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Originally posted here
