EUR/JPY: bulls need this territory to hold around 55-DMA - Commerzbank

Analysts at Commerzbank explained that EUR/JPY has been correcting lower over the last 2 weeks and is expected to stabilise around the 55 day ma at current levels.

Key Quotes:

"Ideally we would like to see the market remain underpinned here (favoured) and look for signs of recovery towards 133.13/48. Above 133.48 lies the 135.24 1979-2018 downtrend line. Still further up sit the 137.51 2018 high and the 137.87 2008-2018 resistance line.

Below the 55 day ma would allow for a retest of the 127.85 mid September low. Where are we wrong? Only below 127.85 would leave the market back on the defensive and suggest losses back to the 124.91 mid August low."