EUR/CHF had another bullish day on Friday, and is now knocking on the door of 1.24, which is the beginning of a massive resistance area all the way up to 1.25 or so. If we can get a close in the 1.25 handle - this pair could become a long-term buy and hold situation. The EUR/CHF is a great measure on how the EUR currency in general is performing against other cross currencies. As the people begin to believe in the Euro again there is a natural movement away from the safe CHF currency towards the EURO. Conversely, in times of trouble investors tend to move towards the CHF and away from the Euro as the CHF is considered a safe currency.
EUR/JPY looks like it is still weak, and one has to wonder whether or not the pair is projecting underlying weakness in the Euro as a whole. There are certianly plenty of reasons to be skeptical of the Euro at this point in time. We need further evidence of strength in the Eure before trading the Euro long.