EUR/JPY constructive above 131.28 in the longer run – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the cross keeping its up move unchanged while above 131.28.

Key Quotes

“EUR/JPY has held below the 134.32/61.8% of the move down from 2014 and is finally starting to correct lower. Provided that the uptrend at 131.28 contains the down side, the longer term up move will remain intact. However it should be noted that the intraday Elliott wave count are now negative and suggesting that the trendline will not hold. Above 134.32/58 would target the 1979-2017 resistance line at 139.12. Intraday dips will find some support offered by the 131.90 end of August high”.

“A move below the 55 day moving average is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low”.