EUR/JPY: Sell the bounce circa 120.85 - Commerzbank

Dhwani Mehta FXStreet

According to Karen Jones, Analyst at Commerzbank, EUR/JPY’s upside attempts will continue to get sold into its 5-month downtrend, currently located at 120.86.

Key Quotes:

“EUR/JPY’s outlook remains negative while capped by its 5-month downtrend, currently at 120.86. This is reinforced by resistance at 121.45/48 - this is the location of the 200-day ma, the 50% Fibonacci retracement and the late October high.

While capped here, attention remains on the 119.48 uptrend. This should hold the initial test, however, longer-term the risk has increased for a break lower. Failure here will target the 117.09 October low ahead of the 115.87 September low.

Above the 200 day-ma lies the 123.34 July high.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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