EUR/JPY still on the defensive – Commerzbank

Further downside in the cross appears limited for the time being, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY remains on the defensive and has eroded the base of the cloud, currently at 130.54. Below the 130.54 cloud lies the 130.00/129.90 78.6% retracement. In this vicinity we also find the 55 and 200 week moving averages. This is the last defence for the 128.96 March. We have conflicting analysis and no strong bias at this juncture. Our suspicion is that it is on the defensive but the downside is now limited”.

“Should this hold the downside we will allow for recovery once more and a retest of the 133.48 recent April high”.

“Below the March low at 128.96 targets the 127.57 August 2017 low and the 50% retracement at 126.18 50% retracement”.