Axel Rudolph, Senior Analyst at Commerzbank, noted the cross could slip back to the 128.40/127.80 band ahead of another leg higher.
Key Quotes
“EUR/JPY‘s move higher last week has neutralised our immediate outlook. The 55 day ma has been eroded with the 2018 downtrend line at 130.51 being in focus. Intraday Elliott wave counts are positive and we would allow for dips to now hold at circa. 128.40-127.80 before another leg higher being seen. Above the 130.51 resistance line lies the July high at 131.98. Above here would re-assert upside pressure and re-target the 133.48 April peak”.
“Only if support at 124.91/62 were to give way, would the area between the December 2016 high and the June 2017 low at 124.09/122.40 be back on the plate”.
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