EUR/JPY: Strong recovery from trend line support at 124.46 – Commerzbank

EUR/JPY has seen a strong recovery from trend line support at 124.46 and now trades around 125.70. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to retest the 126.75 peak from mid-August and the 2014-2020 resistance line at 127.53.

Key quotes

“EUR/JPY has a strong recovery from the four-month uptrend at 124.46. This suggests a retest of the 126.75 peak from mid-August and the 2014-2020 resistance line at 127.53. A resistance line only connects 2 points and we have no strong bias on whether this will hold or not.”

“Below 126.46/34 would target the January high at 122.88. The latter guards the July low at 120.28.” 

“Above the 127.53 downtrend we have the 200-month ma at 130.57.”