The EUR/JPY pair initially fell during the Thursday session, but much like he did on the Wednesday session we saw a nice bounce by the end of the day. In fact, the candle that printed for Thursday was actually green, unlike the one on Wednesday. With this in mind, it does look like we are starting find serious support in this currency pair and are looking to start going higher again.
I personally like this pair as long as the "risk on" attitude of the market continues. As you can see on this chart, I have several indicators up, and the level that we are trading at right now is certainly one of interest. The 100 handle should continue to be an area of interest, and the fact that we have formed two hammers in a row at this level does suggest that bigger money players are coming into the markets.
Adding to that is the fact that the 100 day moving average is just below the two hammers that have just printed. The Fibonacci retracement tool is drawn on this chart, and you can see that the 100 level is roughly where the 38.2% retracement level is. This does suggest that there will be quite a bit of interest in this general vicinity.
European bailouts, Bank of Japan
The European bailouts look like they're set to go forward for Spain and Greece, and this of course will help the value of the euro as it is a sign of relief when it comes down to whether or not the banks will hold up. Conversely, the Bank of Japan is working against the value of the Yen, and as such there could be further easing measures come out of Tokyo in the near future.
On a break of the Wednesday and Thursday highs, I am going to be going long of this pair and aiming for when I see is the next logical resistance point on the longer-term charts: the 105 handle. This should be a significant move, and there is even the possibility that we may see a 110 handle before it's all said and done. As for selling, I wouldn't consider it until we broke well below the 98 handle.