The EUR/JPY pair fell after going back and forth during the session on Tuesday. Market is sitting at the 141.50 level, and as a result I think this market will continue to go higher, reaching the 145 level. However, if we pullback from here I would be more than willing to not only go long of this market, but add to the position I already have. I think this market will continue to be bullish, but a short-term pullback is possible. Looking for short-term charts to show signs of support could be the way to enter this market if you have not had a chance to do so yet.
I also believe that there is a ton of support at the 140 handle, as well as the 139 handle. Both of those areas could bring in buyers that have missed out on the bullish move higher, and as a result I think that supportive candles below are imitations to join the party so to speak.
The Japanese yen continues to weaken overall.
The Japanese yen continues to weaken against many currencies out there, and the Euro of course is no exception. That of course should continue against the Euro, as it continues to appreciate against the US dollar. Ultimately, the Japanese yen should be shorted for the longer-term as well, and thereby making this a "one-way" trade. I believe this should continue through the rest of the month, not to mention the fact that I think it will probably be the case for a large portion of 2014 as well.
This market will have its pullbacks from time to time, and some of them could be rather significant. But at this point time, I believe that the 139 level is the "floor" in this market. That floor should continue to keep the market somewhat buoyant. Going forward, and because of that I have no scenario where I sell this pair at all. All things being equal, I will not only be long of this market, but I will hold onto that trade for a significant amount of time.
