When Will EUR/JPY Break Through Resistance At 131.00?

I have been looking at this chart for quite some time now and I keep getting stuck on the 131.00 resistance level that the EUR/JPY has bounced off of several times on the 3 hour candlesticks.  I really like the strength of this play for a buy as I recommended  yesterday as a signal to my subscribers.

There appears to be upside for around 400 pips because the Euro is still strong heading into 2009.  I think that will be another story when the European Central Bank (ECB) cuts rates out of shear necessity in early 2009.  I also don’t think that Japanese economic fundamentals are going to come out with any earth shattering positive financial news that would drive this currency south.

The question then becomes, can the Euro rally past the 131.00 level before an eminent rate cute drives holders out of this currency?  I am no psychic, but I think it will end up happening.  My experience is that resistance levels like these that continue to be tested are breached in the long run.  I also enjoy trading this pair overall because it trends well.

So I’m bullish on the EUR/JPY for the next week.  I’ve spilled the beans.   Now go and make some pips.

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