EUR/JPY upside likely to struggle around 114.15/80 – Commerzbank

In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, bullish attempts could lose vigour in the 114.15/80 band.

Key Quotes

“EUR/JPY is seeing a small rebound, but is likely to struggle 114.15/80 and we should then see the currency pair come under pressure”.

“It is likely to remain on the defensive this week following the failure recently at cloud resistance (116.20/117.87) and the erosion of the short term uptrend”.

“We retarget the 110.88/84 recent lows and the 109.30 June low. The intraday Elliott wave counts are neutral to negative and suggest that the market will consolidate very near term but that rallies should fail circa 113.50/114.15”.

“Cloud resistance lies 116.20/117.87 and this will need to be cleared for a reattempt on key resistance, which is the 2014-2016 downtrend at 124.02”.