What Is Forex?
The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate. 

Long EUR/JPY@103.80. Stop at 103.00. Take profit 105.30

US stocks showed a key reversal pattern last Friday ( Positive Hammer) on the back of falling concern of a fiscal cliff thanks to a comment (BOEHNER SAYS MEETING WITH PRESIDENT WAS CONSTRUCTIVE, OUTLINED A FRAMEWORK FOR TAXES, SPENDING). Risk-sentiment looks to be improving ( our gram+ is now at risk-neutral out of risk-averse today). I am likely to make use of this timing as a chance to go long X.JPY as RISK ON trade & I prefer long EUR/JPY from here as it looks to be lagging other X/JPY. AUD/USD/CAD outperforming by one.5% vs EUR outperforming by 0.3% against JPY this month. They have the Eurogroup meeting to speak about bailout money to Greece later today, so I place my cease at a bit far away than usual in preparation for headline risks around the meeting. In addition, USD/JPY market isn�t longer than yesterday as the market had expected some dips to 80�s through the BoJ meeting & trimmed some longs, so I think the topside is lighter than before. EUR/JPY is breaking one.5 y downtrend, the next level will be 105.30 ( 38.2% fibo).