EUR/JPY: Current 122.93 (Sunday, March 7, 2010). 
Trend: correction during downtrend.

Please refer daily charts and not short-term charts e.g. hourly charts.

Please note the following:

1) Europe: In general the economic releases were positive especially the German factory order report was quite good. The problem of that Greece may not be able to control its fiscal deficit still has downward pressure on Euro but no further negative news have been there.

2) Japan: There have not been many economic releases from Japan during the past week but we should not forget what is happening to Toyota, the biggest Japanese company? Another nail for was on March 5th and it was the recall of 1.7 Million cars if Europe.
 
3) March is the financial year closing in Japan and exporters should bring back JPY home to make their balance sheet good. This would give strength to JPY up and hence USD JPY may have downward pressure during the later part of March.

Analysis: We expect that the currency pair to remain in downward pressure in the coming days but expect it to move upwards to 124.00 in coming days. Overall we expect a volatile sideways movement between 122.00 and 124.00 for a few days and avoiding a longer-term trading position.

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For short term trades, please refer to daily technical analysis for EUR/JPY.