EUR/JPY expected to struggle around 134.27/40 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, said the upside in the cross could find strong hurdle in the 134.27/40 area.

Key Quotes

“EUR/JPY nears the September peak and double Fibo at 134.27/40 around which it may short term struggle (61.8% retracement from 2014 and the 78.6% retracement from 2015). Below the 133.10 late September high lies good support at 131.75/68. It is where the last month’s lows were made and the 55 day moving average at 131.54 can also be found in this vicinity. Should it be slipped through, the mid-September low at 130.64 would be in focus. Below it lies the September low at 129.40 and the August low at 127.57. Short term the market is side lined 131.85/134.40”.

“A move above the 134.58 November 2015 high would target the 2008-2017 resistance line at 140.90/141.00”.