EUR/JPY scope for a visit to 134.32 – Commerzbank

In light of the recent price action, the cross could attempt a test of the 134.30 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY continues to see a strong rebound from the 55 day ma and cloud support, and uptrend which currently lies at 130.91/129.72 The move above 132.24/45 (August 2015 low and January 2016 high) has re-introduced scope to the 134.32/61.8% of the move down from 2014. Above here 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 127.57 August low”.