EUR/JPY: Bouncing from its uptrend - Commerzbank

Karen Jones, Analyst at Commerzbank, offers a technical view for the EUR/JPY pair’s possible near-term momentum.

Key Quotes:

“EUR/JPY is recovering in its range – it remains capable of retesting the recent high at 134.50/58 – this is the high from November 2015 and also a double Fibonacci retracement. This level is key short to medium term - a close above here will introduce scope for a test of the 2008-2017 resistance line at 140.46/141.06. However equally we could again see failure here.”

“It could be a top or a continuation pattern. while above the uptrend at 132.22 an upside bias persists. Below here should be enough to negate an upside bias and re-target the 131.16 recent low.”

“Only a close below the 131.16 recent low will confirm that the market has topped and confirm losses to 128.50 and the 127.57 August low.”