EUR/JPY dips expected to hold near 128.40/127.90 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, dips in the cross are seen contained around 128.40/127.90 band.

Key Quotes

“EUR/JPY has recently reversed just ahead of the 200 day ma, 55 week ma and the July high at 131.28/98. Elliott wave counts suggest that dips should now hold at circa 128.40-127.90. A move above the July high at 131.98 would re-target the 133.48 April peak”.

“Below 127.90 would leave the market back on the defensive and suggest losses back to the 124.91 mid August low”.

“Only if support at 124.91/62 were to give way, would the area between the December 2016 high and the June 2017 low at 124.09/122.40 be back on the plate”.