EUR/JPY: Rally higher to meet tough resistance at the 130.05/74 area – Commerzbank

EUR/JPY last week saw a decent rebound from the 127.94 August low. Downtrend at 130.05 is the initial resistance with the 130.74 expected to be a tougher barrier, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Below recent lows at 127.94/93 lies the 2020-2021 support line at 127.41

“Rallies will find initial resistance at the 130.05 resistance line. The 130.55/74 July and September highs are likely to act as tough overhead resistance and we would allow for this latter zone to again cap the rally.” 

“Directly below recent lows at 127.94/93 lies the 2020-2021 support line at 127.41. A close below here would introduce scope to the 200- week ma at 125.88.”