EUR-JPY Pullback to a crucial area... After the bullish run of EJ last week it stopped at a crucial zone, my trend bias is still undecided, however, i am fairly confident that we will see EJ retrace to the zone in green (lower green box) before making its mind up whether its going to continue its break to the upside or crumble down in the downwards channel. The breakout last week could be a common case of market makers locking in long positions before they short against them. With that being said i would tread very carefully around the eurozone at the moment. The volatility in gold last week did not help yen pairs due to the correlation within yen and gold. I believe there is a good amount of pips to be made down to the green zone, if you are trading it i would make sure that you keep you stops tight and lock the profit in!
