EUR/JPY bullish above 134.32/58 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could attempt a test of 139.12 while above the 134.32/58 band.

Key Quotes

“EUR/JPY has reached its initial target - the 134.32/61.8% of the move down from 2014. We would allow for this to hold the initial test. We note the 13 count on the 240 minute chart. Provided that the uptrend at 131.00 contains the down side, the longer term up move will remain intact. Above 134.32/58 would target the 1979-2017 resistance line at 139.12. Intraday dips will find some support offered by the 131.90 end of August high”.

“A move below the 55 day moving average is needed to alleviate upside pressure and retarget the 127.57 August low”.