EUR/JPY to rise toward the 130.55 July high on a close above downtrend at 129.51 – Commerzbank

EUR/JPY is eroding its six-week downtrend at 129.51. The pair has reversed from the 55- week moving average at 127.92 and targets the 130.34/55 region, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank ,reports.

Break above 130.55 to open the way for a recovery to 132.69

“EUR/JPY has eroded the six-week downtrend as well and upside risk continues to build. We have yet to see a close above here (129.51) and may consolidate very near term.”

“The market has recently reversed ahead of the 55-week ma at 127.92.”

“Above the market we have the 55-day ma at 130.34 and the end of July high at 130.55.”

“Above 130.55 would imply recovery to 132.69.”