EUR/JPY starts to erode the 123.47 five-month uptrend – Commerzbank

EUR/JPY is starting to erode the five-month uptrend at 123.47 and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the September low of 122.38.

Key quotes

“EUR/JPY remains under pressure following its recent failure at the 200-week ma at 125.21 and our bias remains negative below 125.30. 

“The pair is starting to erode the five-month uptrend at 123.47 and we target 122.38, the September low and there is scope for the 200-day ma at 121.13. Only a break above here and Fibonacci resistance at 125.29 would initiate a re-challenge of the 2014-2020 resistance line at 126.93, which we again would allow to hold.”