Euro / Japanese Yen
Long

EURJPY - Corrective wave

83
EURJPY (D) - medium term bullish bias

The October rally came to a halt near the July high of 121.40. We expect the price to pull back and consolidate as longs take some money off the table. This could be the fourth corrective wave following a strong bullish impulse. The upbeat sentiment remains intact as long as buyers commit themselves near major support levels. The 38.2% (119.40) Fibonacci retracement level coincides with the moving averages and may contain any pullback in the next few days.

Key support: 119.40
Key resistance: 122.30

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