By FXEmpire.com
The EUR/JPY pair shot straight up on Friday as the announcement out of the European Union meeting got everyone giddy. The move stopped right at the 101 level, and as a result it looks like we are simply at the top of the most recent consolidation range. The breaking of 101 on a daily close would be our signal to get long, and it isn’t until that move that we could consider doing so.
The selling of this pair will require a weak candle, and this is something that we would be looking for at this point. The “solution” that the EU came up with lacks one important thing: details. Because of this, we think this rally will ultimately fail, and that the large move was due to short covering just as much as anything else.
Click here a current EUR/JPY Chart.
Originally posted here
