In light of the recent price action, the cross is now poised to test the 131.17/98 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
Key Quotes
“EUR/JPY has recovered and remains well placed to re-test the 200 day ma, 55 week ma and the July high at 131.17/98. Elliott wave counts suggest that dips should now hold at circa 128.40-127.90. A move above the July high at 131.98 would re-target the 133.48 April peak”.
“Below 127.85 would leave the market back on the defensive and suggest losses back to the 124.91 mid August low”.
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