The stance on the cross is expected to remain negative as long as it trades below 129.79, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“EUR/JPY has recovered but has not taken out any resistance of note and our view remains unchanged. We look for the market to remain on the defensive while below the 55 day ma at 129.79 and the 2018 downtrend line at 130.09. The risk remains that we will see a slide back to 125.75, the last defence for the 124.62 recent low. Please note that intraday signals are less clear, but for now we stay bearish”.
“Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00″.
Share
