EUR/JPY starts to ease lower, holding the 133.12 mark is crucial – Commerzbank

EUR/JPY is coming under pressure. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, stays focused on the 133.12 as a break below here would open the way for a slump towards the 131.51/40 neighborhood.

Failure at the 55-DMA needed to negate upside pressure

“EUR/JPY is starting to correct lower and attention is on the 20-day ma at 133.12. The 20-day ma guards the 6-month uptrend at 131.51 and this is reinforced by the 55-day ma at 131.40.” 

“While above the 55-day ma at 131.40, a longer -term upside bias will remain.” 

“Initial resistance is 134.12, the current June high.” 

“Our longer-term target is the 137.51 2018 high.”