EUR/JPY expected to test the 134.30 region – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees there is scope for the cross to challenge the 134.30 area.

Key Quotes

“EUR/JPY remains on the defensive very near term, it has sold off to and so far held over the six month uptrend line at 131.99. Provided that the uptrend contains the down side, the longer term up move will remain intact and we should see a re-challenge the 134.32 Fibo 61.8% of the move down from 2014. However it should be noted that the intraday Elliott wave counts are conflicting and caution is warranted and we would keep stops tight. Above 134.32/58 would target the 1979-2017 resistance line at 139.12”.

“A move below the 55 day moving average is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low”.