In view of Karen Jones, Team Head FICC Technical Analysis at Commerzbank, EUR/JPY could have bottomed out in recent lows in the mid-116.00s.
Key Quotes
“EUR/JPY remains on the defensive very near term, its recent low at 116.42 was not confirmed by the daily RSI and we have a second 13 count and TD support at 116.36 – we therefore suspect the down move may be over for now. Initial resistance is the 20 day ma at 117.99 and the 120.06 25th July low. Key short term resistance is the 55 day ma and the 3 month downtrend at 120.10/39. The market will need to regain this on a closing basis to reassert upside interest”.
“TD support at 116.36 guards the 114.86 2017 low. The break lower last week saw the market erode a 2012-2019 support line and this leaves a negative bias entrenched while below the downtrend”.
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