By FXEmpire.com
The EUR/JPY pair bounced during the session on Wednesday, as the 94 handle continues offer significant support. This was first seen during the Monday session as we formed a nice hammer, and has been confirmed on both Tuesday and Wednesday. This sets up for an obvious trade in our eyes, as a break below that level would be extremely bearish at this point. One has to wonder whether or not this coincides with the 78 handle in the USD/JPY pair. It is at that level that the Bank of Japan seems to be trying to support the currency pair. It is possible, however there is no way to prove it, that the taken Japan is also working somewhere near this level in this currency market.
There is a gap above and the weekend open, and as such we feel that we will more than likely consolidate in a relatively tight 100 pip range for the time being. Because of this, we feel this is a short-term traders market, but most certainly have a downward bias when it comes to this pair.
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Originally posted here
