EURJPY continued to trade above 171 mark on Wednesday, hitting new record high, driven by yen’s fresh weakness across the board.
The pair is moving within a steep upleg which extends into eighth consecutive day and is on track to register the sixth straight monthly gain, in a rally from Dec / Jan higher base.
Bulls so far ignore overbought daily studies and intervention warnings and hit initial target at 171.68, ahead of 172.00 (round figure) and Fibo projections at 172.17/57 (138.2% and 150% respectively).
However, some price adjustment should be anticipated in coming sessions, with shallow dips to ideally find ground above broken 170 pivot (psychological / 10DMA) and offer better buying opportunities.
Caution about potential intervention, which may slash the price.
Res: 172.00; 172.17; 172.57; 173.00
Sup: 171.44; 171.00; 170.85; 170.00
