EUR/JPY now focused on 128.95 – Commerzbank

The cross could now attempt to reach the 55-day SMA near the 129.00 handle, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY continues to correct higher near term and we would allow for a move to the 55 day ma at 128.95. The daily Elliott wave count is indicating a likely 128.70 correction prior to the next down leg. Resistance comes in at the 128.95/129.35 early and late March lows”.

“Were support at 124.91/62 to give way, the area between the December 2016 high and the June 2017 low at 124.09/122.40 could be reached”.

“Only a rise above the July high at 131.98 would re-instate a bullish view and lead to the April peak at 133.48 being reached”.