EUR/JPY sold off on Thursday to test the 128.60 mid-July low. The pair is set to hold above the 2020-2021 support line at 127.26, however, a slide below here would introduce scope to the 200-week ma at 125.92, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Negative bias while below the 130.35/55 area
“Intraday Elliott wave counts remain negative and attention has reverted to the 127.94 August low and the 55-week ma at 128.18. We would allow for some profit-taking between here and a 2020-2021 support line at 127.26.”
“Below 127.26 would introduce scope to the 200-week ma at 125.92.”
“Rallies should remain capped 130.35/55 for a negative bias to be maintained.”
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