EUR/JPY expected to hold around 119.40 – Commerzbank

The correction lower in EUR/JPY is seen holding on to the 119.40 area, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY continues to sell off from its four month resistance line at 122.72 and also the 2015-2017 downtrend. The market has eroded 120.02 March 8 low and this leaves the 5 month uptrend at 119.44 exposed, which in turn guards the 118.25 24th February low and the 116.92 2016 to 2017 uptrend. Please note that the intraday Elliott wave counts suggest that the 119.44 support line will hold”.

“Above the 4 month downtrend lies another downtrend at 123.88 and the 124.08 December high”.