EUR/JPY: Sell the rallies circa 134.50 - Commerzbank

Karen Jones, Analyst at Commerzbank, notes that the EUR/JPY cross is heading towards the 2017-18 support at 133.02, but any recovery should be sold-off around 134.50.

Key Quotes:

“EUR/JPY is correcting lower and has already eroded support circa 134.50 (previous highs). The intraday Elliott wave counts are suggesting rallies will struggle circa 134.50/90 and sell off towards the 2017-18 support line at 133.02, which should ideally hold the downside.” 

“Beyond a retracement, the recent rise above major resistance offered by 134.50/58 (high from November 2015 and also a double Fibonacci retracement) introduces scope for a test of the 2008-2018 downtrend at 140.20.“