Short-term pullbacks can be a nice buying opportunity at this point, and the previous uptrend is an important support level. EUR/JPY rallied quite significantly during Thursday’s trade, breaking a major downtrend as we continue to see a lot of noisy behavior. Indeed it is very bullish; it looks like we will continue to see a lot of downside for the Japanese yen. The falling trend line was evident and as a result it is clear that the market made a big decision. The market broke above the ¥1 6 level, which is obviously a very bullish sign in itself. Advertisement Are you ready to place your orders? OPEN FREE PRACTICE ACCOUNT Also worth noting is the size of the candlestick, which shows that there is real conviction in this market. The Japanese yen was beaten against most currencies as we saw a lot of concern about interest rates around the world as the Bank of Japan battled rising interest rates in the country. At this point, the market is likely to see the Japanese yen weakening against most currencies, and the fact that the Euro got a boost on the day from the European Central Bank’s 50% interest rate cut will only make it more turbocharged. See Reversals as Buying Opportunities At this point, it is very likely that we will be able to rise to the 1 8 yen level, the previous high. This is an area where I expect to see major resistance, but if we break it, it is possible that the market could go up to ¥150. Short-term pullbacks can be a nice buying opportunity at this point, and the previous uptrend is an important support level. If we were to break there, we would also take a 50 day EMA, so I think there is an important layer in that area. A failure below this level would be quite negative, but I don’t think it will happen very soon. This is especially true if interest rates continue to turn as they have been, with Jerome Powell suggesting that the Federal Reserve will continue to be very dovish. It is likely that the bond market will continue to lift the rest of the bond market as interest rates continue to rise to fight inflation, not only in the US but in places like Europe, the UK, etc.