EUR/JPY - Top or continuation pattern - Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, details the bull market and bear market scenarios in EUR/JPY.

Key quotes

EUR/JPY is sidelined – it could be a top or a continuation pattern, we note that the intraday signals have turned more negative. It has again held the 132.17 support line, this is starting to look exposed. While above the uptrend it remains capable of retesting the recent high at 134.50/58 – this is the high from November 2015 and also a double Fibonacci retracement. This level is key short to medium term - a close above here will introduce scope for a test of the 2008-2017 resistance line at 140.46/141.06.

Where are we wrong near term? Only a close below the 131.16 recent low will confirm that the market has topped and confirm losses to 128.50 and the 127.57 August low.

Short-Term Trend (1-3 weeks): Neutral.

Long-term trend (1-3 months): Neutral.