EUR/JPY move lower would be corrective only – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s down move could have terminated in the 128.30 region.

Key Quotes

“EUR/JPY has stalled ahead of the 20 day ma and has sold off. The Elliott wave count continues to indicate that the move lower is corrective only and probably terminated at 128.32. We are unable to rule out an extension towards the 61.8% retracement at 128.04, but look for this to hold. Recovery from here would allow for a retest of resistance 133.13/48. Support at 128.04 guards the 126.66 78.6% retracement”.

“Rallies will find initial resistance at 130.36/63, the 200 and 20 day moving averages. These guard 133.13/48, the highs since April. Above 133.48 lies the 134.27 1979-2018 downtrend line. Still further up sit the 137.51 2018 high and the 137.87 2008-2018 resistance line”.