By FXEmpire.com
The EUR/JPY pair fell during the session on Monday, but did bounce back in order to form a hammer just above the 96 handles. This is close to the monstrous hammer that we see back in late may, and it does in fact suggest that we are about to see some type of double bottom formation. Needless to say, it’s a bit of a stretch at this point, but it is something to think about.
On a break of the top of Monday’s highs, we would be interested in buying this pair for a short-term run to the 98 handle. It isn’t in till we get below the 95.50 level that we are interested in shorting at this point, the fact is that this market is far oversold, and it bounce really should be coming at this point.
For those of you that are a bit more conservative with your trading, you can use this potential bounce as an opportunity to sell from higher levels. We suspect that the 99 level is going on for the first bit of serious resistance, and as such we would be willing to sell a week looking candle somewhere near that level.
Click here to read EUR/JPY Technical Analysis.
Originally posted here
