EUR/JPY is starting to break down from its range and is eroding the 200-day moving average at 129.02. According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the pair may revisit the 127.50 level.
Downside risk is growing
“Attention is on the March lows at 128.30/20 and the 55-week ma at 127.85. Below here lies the 127.50 February 2019 high and the 200-week ma at 125.97.”
“Only if a rebound managed to regain the 50% retracement at 131.36 and 55-day ma at 131.10 would we start to pay more attention to the upside. Initial resistance is seen at the 130.55 late July high. Further minor resistance comes in at the 131.08 the 13th July high.”
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