Let’s have a good look at EUR/JPY to start the day. The daily chart is in a clear down-trend after a 5-wave move from 111.40 to 94.10 so we should be in rally-selling mode there. Nevertheless the 50% retracement has been breached implying that further gains and the 61.8% retracement level at 104.80 remains a possibility. The up-move clearly accelerated as soon as it broke above 99.00 so this level become the first major support point.
The shorter-term charts are in bullish mode but are retracing after highs were posted at 103.80. The 38.2% retracement of 99.50/103.80 comes in at 102.20 and this level is trying to form a short-term base. If this level breaks, we should see a minimum move to 101.15 and possibly even 100.50.
Conclusion: This pair is offering excellent two-way trading opportunities and should be watched closely. Both the long-term down-trend and the short-term up-trend are quite strong, another good sign for trading opportunities. I’d play 100.50/105.00 over the coming weeks and we may be able to get aggressive near the edges.