EUR/JPY daily chart, October 3, 2016

EUR/JPY Forecast October 3, 2016, Technical Analysis

The EUR/JPY pair initially fell during the day on Friday, but found enough support below the 113 level to turn things around and form a bit of a hammer. The hammer is a very bullish sign, but it’s not until we break above the top the shooting star on Thursday and that I think the buyers will come into the marketplace. Once we get above there, the market should then reach towards the 116 level. Ultimately though, this is a market that remains fairly negative so this might be a short-term trade at best.