EUR/JPY constructive above 134.02 – Commerzbank

There is still room for a recovery in the cross as long as 134.02 holds, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has failed to maintain the minor breach of the 137.18 downtrend from 1981 (we have seen a weekly close above here but only just!). The new high was accompanied by a divergence of the daily RSI and the market has dived back to 6 month uptrend at 134.02, which is currently holding”.

“While under pinned here it will remain capable of recovery. A move above 137.51 (Fridays high) will target the 139.94/140.00 2008-2018 resistance line”.

“The 6 month uptrend will need to be eroded together with the 133.09 January low to re-target the 131.16 November low”.