Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the cross could extend the upside to the 131.34/48 band.
“EUR/JPY continues to rally but appears to be struggling ahead of the 55 day ma at 130.61 and downtrend at 131.15. Near term we unable to rule out scope for further gains to the 131.34/48 May highs and possibly even for the 133.48 April peak. The market is immediately bid above 128.00/128.90 and only below here would 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”.
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