Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the upside in the cross could fail around the 123.80 area.
Key Quotes
“EUR/JPY continues to correct but we suspect will struggle to overcome the 123.80/50% retracement. It recently traded through BUT did not CLOSE below the 2019 uptrend and has been side lined since. It should fail here and then head to the 119.91 78.6% Fibonacci retracement. This is the last defence for the 117.85 January spike low”.
“Resistance is offered by the 123.75, May 21 high and this maintains an overall negative bias and protects 125.52 78.6% retracement and the 200 day ma at 125.90″.
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