EUR/JPY has tested and is seeing a decent rebound from the 127.94 August low. In the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the pair will meet tough resistance at the 130.10/74 region.
Japanese yen sells-off
“Rallies will find initial resistance at 129.57/66 (55 and 200-day ma) ahead of the 130.10 resistance line.”
“The 130.55/74 July and September highs are likely to act as tough overhead resistance and we would allow for this latter zone to cap the rally.”
“Directly below lies the 2020-2021 support line at 127.39. A close below here would introduce scope to the 200-week ma at 125.39.”
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