Karen Jones, Team Head FICC Technical Analysis at Commerzbank, suggested the cross needs to surpass the 120.55/72 band in order to regain upside pressure.
“EUR/JPY is on the defensive but with a second 13 count and TD support at 116.36 we are cautious of blindly following this lower. Initial resistance is the 20 day ma at 118.55 and the 120.06 25th July low. Key short term resistance is the 55 day ma and the 3 month downtrend at 120.55/72. The market will need to regain this on a closing basis to reassert upside interest”.
“TD support at 116.36 guards the 114.86 2017 low. The break lower last week saw the market erode a 2012-2019 support line and this leaves a negative bias entrenched while below the downtrend”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.