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In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could now aim for another visit to the 200-day SMA in the 131.80 region.

Key Quotes

EUR/JPY is seeing a strong recovery off the 55 day ma and the top of the daily cloud at 129.05. Provided the market holds over 129.05, we will look for recovery back to the 200 day ma at 131.78. The market has recently broken above the daily cloud for the first time since February and we look for the 200 day ma and recent high at 131.80/98 to be eroded shortly. We look for further gains to the 133.48 April peak. Dips are indicated to hold over 129.00″.

“The market stays bid above the 129.26/05 55 day ma and cloud and only below here would negate the topside and re-target the 124.62 May low”.