EUR/JPY could still test the 128.00 area – Commerzbank

A drop and test of the 128.00 region is still not ruled out, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY is attempting to stabilise at the 50% retracement at 129.01 and the Elliott wave count continues to indicate that the recent move to 129.13 was the end of the correction lower. We remain unable to rule out an extension towards the 61.8% retracement at 128.04 (although this looks less likely). Recovery from here would allow for a retest of resistance 133.13/48”.

“Rallies will find initial resistance at 130.73/90, the 200 and 20 day moving averages. These guard 133.13/48, the highs since April. Above 133.48 lies the 135.24 1979-2018 downtrend line. Still further up sit the 137.51 2018 high and the 137.87 2008-2018 resistance line”.