EUR/JPY: watch 130.15 key resistance - Commerzbank

Analysts at Commerzbank explained that EUR/JPY focus is on the 20-day ma BUT we have a couple of problems...

Key Quotes:

"We noted the 13 count on the daily and the divergence of the daily RSI and the TD resistance at 132.565, all were warning signs. It has eroded the 20-day ma and risks have increased on the downside. 

Intraday rallies are indicated to terminate circa 130.15. Failure at last weeks low at 128.50 will further negate immediate upside momentum and allow for some slippage to the previous May high at 125.80. 

Where are we wrong near term? Initial resistance at 130.15 guards the recent high at 131.40. Only above here would re introduce the 134.32/61.8% of the move down from 2014."