EUR/JPY positive above 131.70 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could still test the 134.32/58 band while above 131.70.

Key Quotes

“EUR/JPY eroded the six month uptrend line last week but saw no follow through and the market has bounced off the 131.70 end of August high. We suspect that it may be topping but this current price action has somewhat neutralised our immediate outlook. While above 131.70 scope remains to retest recent highs at 134.32/58. A move below the 55 day moving average at 130.97 is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low”.

“Above 134.58 would target the 1979- 2017 resistance line at 139.12”.