EUR/JPY could test 125.75 on a drop below 128.00 – Commerzbank

Pablo Piovano FXStreet

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested the cross could weaken to the 125.75 level on a close below the 128.00 handle.

Key Quotes

“EUR/JPY has been rejected by the 55 day ma at 130.42 and 2018 downtrend line at 130.80. It is on the defensive and an erosion of 128.00 on a closing basis should be enough to trigger a slide back to 125.75, the last defence for the 124.62 recent low”.

“Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00”.

“Near term should a break above the downtrend be seen, we would be unable to rule out scope for further gains to the 131.34/48 May highs and possibly even for the 133.48 April peak”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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