EURJPY - Selling in EURJPY was limited yesterday with 97.02, 261.8% extension level of losses from 101.41-99.76, acting as good support. Buying from this area resulted in a positive daily performance. It should also be noted that negative price action stalled close to 96.88, 78.6% pullback from 95.59-101.65, a prime area for Harmonic patterns.
With the dip being bought again overnight our bias has been reversed and we look for further bullish action today. In view of these facts our call is bullish above 97.26.
The profit targets are 97.88, the overnight high, then 98.14, this week’s high, and towards 98.45.
The risk to this call is that buying interest is weaker than currently assessed. This would be signalled by a move through 97.26, the overnight low.