The EUR/JPY pair fell during the session on Monday, but as you can see we bounced off of the 129 handle yet again. The resulting candle is a hammer, and this does look like a market that's ready to continue higher. If we managed to break above the top of this candle, I think that we could reach the 132 handle in relatively short order, but that being said I think that it's going to be very difficult to get there.
The Bank of Japan continues to work against the value of the Yen going forward, and as a result I feel that this is a "one-way trade." I will not sell this marketplace, and do not see an opportunity to do so anytime soon. I think that the bullishness will continue, but it will be very difficult.
The Euro is getting a bit of a bounce against the Dollar at this moment time, so it makes sense that this pair would continue that particular type of bullishness. I think that this market will eventually reach the 133 handle in the short term, and by the time it's all said and done the 135 handle. Between now and then, expect choppy conditions but a general bullish attitude in this market.
One-way trade, cannot sell it.
I sadly cannot sell this market because of the way the Bank of Japan has been acting, and the fact that the Euro is oversold in general. The fact that this market has not sold off like EUR/USD suggests to me that this market is more about the Yen than the Euro. Because of this, I think that we will continue to see the slow steady grind higher, and expect pullbacks to be buying opportunities as this market continues higher. I don't think there is a scenario where I would be a seller this market, at least until we get below the 1.5 handle, something that seems very unlikely at this point in time.