Following the ongoing recovery, the cross is now poised to test the 131.13/98 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
“EUR/JPY is poised to retest the 200 day ma, 55 week ma and the July high at 131.13/98. While it is possible that this will provoke some profit taking, Elliott wave counts suggest that dips should now hold at circa 128.40-127.90. A move above the July high at 131.98 would retarget the 133.48 April peak”.
“Below 127.85 would leave the market back on the defensive and suggest losses back to the 124.91 mid August low”.
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