EUR/JPY: Failure at the 131.79 55-DMA to negate upside pressure – Commerzbank

EUR/JPY continues to ease lower. Nonetheless, the pair looks bullish long-term as it holds above the 131.84/79 neighborhood, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Bullish while above uptrend at 131.84

“EUR/JPY continues to correct lower and targets the six-month uptrend line at 131.84 which is reinforced by the 55-day moving average at 131.79. While above there, a longer-term upside bias will remain in play. Initial resistance above the June 10 high is seen at 133.75, above which sits 134.12, the current June high.” 

“Our longer-term target is the 137.51 2018 high.” 

“Immediate support can be spotted between the April high and late May low at 132.53/36.”