Strong recovery by USD/JPY and EUR/JPY suggests interim bases in place - Commerzbank

Karen Jones, Analyst at Commerzbank, provides a technical outlook for the USD/JPY major alongside her take on the EUR/JPY cross. 

Key Quotes:

"USD/JPY is recovering from circa the 38.2% retracement at 111.98 area and the 112.02 April high. The rally has taken out the imoku 1 resistance and has its sights on the 114.56 Imoku 2 resistance and the 115.62 19th January high. Above here is need to reintroduce scope to key short term resistance offered by the 16 month resistance line at 118.10."

"EUR/JPY has recently seen a small erosion of the 38.2% retracement of the move from October at 119.70, but importantly did not close below here and very near term has rallied strongly higher. Stronger resistance is not really encountered until 121.50-122.06 (moving averages and cloud). But key near term resistance is the 6 week downtrend at 123.19 and this is our near term target. The top of the range lies circa 123.71/124.08 (15th Dec high). Above 124.08 lies the 124.77 38.2% retracement (of the move down from 2014) and the 125.11 2015-2016 resistance line, is expected to act as critical resistance/break up point."