EUR/JPY: March lows at 128.30/20 to hold the downside – Commerzbank

EUR/JPY bounces off the April low at 129.59 though the pair maintains a negative outlook while below the June 23 high at 132.69. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, expects the pair to see some profit taking at the 128.30/20 region.

Initial resistance is seen at the 131.28 June 29 low

“Even though EUR/JPY remains negative while capped by its June 23 high at 132.69 it has reached the April low at 129.59 which has not been confirmed by the daily RSI, pointing to stabilization being seen.” 

“Below 132.69 lie the March lows at 128.30/20 and the 200-day ma at 128.28, where we would expect to see some profit taking.” 

“Initial resistance is the 131.28 June 29 low. This guards 132.69/73, the mid June highs and above here will re-target 133.69/75 and the current June high at 134.12.”