EUR/JPY could slips towards 119.45 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could lose further momentum and attempt a test of the mid-119.00s.

Key Quotes

“EUR/JPY remains under pressure and is now trying to erode the bottom of its range at 120.93. Failure here however will trigger a deeper corrective retracement back towards 119.45 zone and possibly the 118.45/ 21st July 2016 high and the 200 day ma at 118.06 and here it should recover”.

“Should it recover it will meet hefty resistance at the top of the range circa 123.71/124.08 (15th Dec high). The intraday Elliott counts are negative and implying that rallies will flounder circa 122.00. Above 124.08 lies the 124.77 38.2% retracement (of the move down from 2014) and the 125.89 2015-2016 resistance line, is expected to act as critical resistance/break up point”.