EURJPY looks to be entering the oversold zone

What we saw during last week was extreme euro weakness across the board. The crosses EURUSD, EURGBP and EURJPY rallied on the downside.

EURJPY could now pose good swing opportunities for a number of reasons: extreme euro weakness, and this particular pair nearing the oversold zone – RSI – 35 (on the daily chart). The third reason is that the USDJPY pair has seen almost flat trading for a month. This could imply a bottom, which leads us to anticipate a move to the upside. Long opportunities could arise near the 'blue zone,' with the primary target for such a move established around the 109.75 (fib-resistance).

In the longer term, the target will be established at the 112.00 level;  the trendline and Fib resistance.