The EURJPY cross hit new highest since September 2008 on Tuesday, as larger bulls regained control after a two-day pause and a false signal from last Friday’s hanging man candle.
Broader weakness of Japanese yen extends, despite signals that Japan is ready to intervene and protect its currency.
Near-term action is so far ignoring strongly overbought daily studies, riding on extended third wave of five-wave cycle from 109.38 (June 2016 low) heading towards targets at 160 (psychological and 160.52 (Fibo 161.8% expansion of the wave C from 114.41 trough (May 2020).
Daily Tenkan-sen in a steep ascend marks strong support (154.49) which should keep the downside protected and maintain firm bullish stance., followed by lower pivot at 153.01 (daily Kijun-sen), violation of which would sideline bulls.
Res: 158.00; 159.41; 160.00; 160.52.
Sup: 156.93; 155.75; 155.05; 154.49.
