Forex: EUR/JPY pulls back to 107.10

FXstreet.com (Buenos Aires) - The EURJPY soared to 107.66 today, as the yen nose dive against most rivals past Asian session, following Japan's consumer data showing prices stagnated in October, reaching a 7-week high at the mentioned level. Negative fundamental news however, tear the paid down back to 107.10, previous multi-week high posted past Nov 26th.

With Japanese elections around the corner, market pays attention to Shinzo Abe, leader of Japan's main opposition Liberal Democratic Party that has repeatedly urged the Bank of Japan to pump unlimited cash into the financial system and said today that monetary easing may include purchases of foreign bonds.

"The EURJPY bounced from mentioned 107.10 immediate support, and like almost any yen cross, looks technically overbought" says Valeria Bednarik, FXstreet.com chief analyst. However, she adds: "despite the readings there are no signs of a reversal coming anytime soon, and yen crosses remain bullish: breach of mentioned high will expose the 108.00 level, while below 171.0, immediate support comes around 106.80 price zone."