Guest Commentary: EURJPY Still a Major Buy?!
* Following a typical reversal from new lows at 94.10 the strong rally back into the previous range confirms a new corrective consolidation phase.
* This view is supported by the trend sequence to 97.35.
* We are reducing longs looking to rebuy lower levels with an improved Risk/Return.
Following the end of the trend sequence in the 94.05 V=I target area and major buy signal on the daily perspective, Euro Yen has rallied powerful to confirm our view of a large albeit probably corrective rally.
This view is reinforced by the break back above the previous 95.60 low and the very likely end of a trend sequence at the previous 97.35 high. because of this and the consequent threat of as much as 3-5 days consolidation, we have and will further cut longs above 97 for initial consolidation in a 96.55-97.35 range possibly expanding to the 38.2% at 96.10 before a deeper correction back to the previous 95.60 low in the region of 50-61.8% retracement area.
We will rebuy this weakness in two parts first at broader uptrend support currently 95.20 and second at or below 95.75 for an eventual break up through the seemingly pivotal 98 for the 100.70 target. Our Stops? 94.00.
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