EUR/JPY above 132.18 should negate the move lower – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross needs to regain the 132.20 area in order to negate the down move.

Key Quotes

“EUR/JPY has failed at the 20 day ma on the first test, dips lower are indicated to remain shallow and we look for this resistance to be retested. It will need to regain last week’s high at 132.18 in order to negate the move lower and to retarget the high from the 21st February at 133.06 and the 55 day ma at 133.91. Intraday Elliott wave counts are neutral to positive”.

“The market has recently charted a key day reversal from the 200 week ma at 129.59 - the recent low was 129.35”.

“Below 129.35 lies the 127.27 August 2017 low”.