EUR/JPY look for continuation higher

Mthokozisi Mpofu Knars Capital

The chart below shows EURJPY in a bullish impulse since the 28th of September 2020. The initial move higher is shown as a leading diagonal with a deep retracement to the 78.6 Fibonacci level.

The bounce of the 78.6 Fibonacci level was in five waves in a minor degree which signalled a reversal to come. Since the 15th of October, we have pushed higher in a bullish one two, one two the major count is shown in the chart below but look for continuation to the upside after we see a correction in the wave iv position.

The current wave count is valid as long as we do not break 123.470, look for buying opportunities on dips. A break of 125.079 opens the door to upside targets of 127.028.

Keys news events to look out for this week Friday 23 October. French Flash Services PMI, French Flash Manufacturing PMI, German Flash Manufacturing PMI, German Flash Services PMI.

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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