EURJPY - Fourth wave

EURJPY (D) - medium term bullish bias

The single currency is in what looks like the fourth wave of its upward movement after rallies in September (1st wave) and October (3rd wave). Recent pullbacks were met with strong buying interests near the 31.8% (119.20) Fibonacci retracement level, and we expect more trend followers to join in as the pair approached the bullish trend line. With enough support, the euro could test the immediate resistance of 121.45 and then toward 123.00 in case of a successful breakout.

Key support: 119.20
Key resistance: 121.45