EUR/JPY: Rallies to fade circa 135.05 – Commerzbank

Karen Jones, Analyst at Commerzbank, offers the key technical levels for trading EUR/JPY in the day ahead.

Key Quotes:

“EUR/JPY is bouncing from the 2017-18 support line at 133.12, which held the initial test. Currently, intraday Elliott wave counts are suggesting that rallies will fail circa 134.65/135.05.”

“Beyond a retracement, the recent rise above major resistance offered by 134.50/58 (high from November 2015 and also a double Fibonacci retracement) introduces scope for a test of the 2008-2018 downtrend at 140.20.“

“Below the 133.12 uptrend should be enough to re-target the 131.16 November low. Only a close below here would negate the up move and suggest losses to 128.50 and the 127.57 August low.”