EURJPY hits new multi-year high

EURJPY rose to new multi-year high (the highest since Aug 2008) on Monday, continuing to trend higher, as yen remains under increased pressure against its major counterparts, mainly due to the wide gap between the monetary policies.

The pair is riding on extended third wave five-wave cycle from 109.38 (June 2016 low) which rose above 161.8% Fibo expansion and eyes key barriers at 170 zone.

The uptrend is strong, though overbought studies may slow the action in coming sessions for consolidation / limited correction.

Dips should be limited (ideally to be contained by raising 10DMA, currently at 160.86) to keep bulls intact and provide better buying opportunities, while extension below 20DMA (159.72) would increase risk of deeper correction.

Res: 162.36; 164.07; 164.97; 167.72
Sup: 162.36; 160.86; 160.00; 159.72