EUR/JPY forecast for the week of August 10, 2015, Technical Analysis

The EUR/JPY pair initially fell during the course the week but found enough support near the 135 level to turn things back around and form a hammer. The hammer of course is a bullish sign, and if we can break above the top of that hammer we feel that the market will probably reach towards the 138 level. It is not until we get above the 138 level that we are willing to buy though, and quite frankly we feel that this is a market that’s probably best suited to short-term traders. With this, we are not taking long-term positions.