EUR/JPY initial test seen around 132.17/23 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggests the upside in the cross could meet initial hurdle at the 132.17/23 band.

Key Quotes

“EUR/JPY is about to encounter the 55 and 200 day ma at 132.17/23, which we suspect will hold the initial test and we have exited our long positions. The recent low at 128.96 was accompanied by a large divergence of the daily RSI and we suspect that we have based there. Resistance above the 200 day ma comes in at the 132.43/47 current March high and Fibonacci retracement. If bettered, the January low and February 21 highs at 133.05/09 would be on the cards together with the 134.25/61.8% retracement”.

“Below 128.96 would trigger a slide to the 127.27 August 2017 low and suggests scope for the 125.58/50% retracement of the move up from 2017 (not favoured)”.