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Analysts at Commerzbank explained that EUR/JPY had a quick move lower last week and was fast approaching the May low at 124.62 but seems to have stabilized at its current August trough at 125.15 for the time being.  

Key Quotes:

“Provided the 125.15 level continues to underpin, the late June low at 127.15 could be revisited towards the end of the week.”

“Below the 125.15 low sit the December 2016 high and the June 2017 low at 124.09/122.40.”

Where are we wrong?  

“Only a rise above the July high at 131.98 would re-instate a bullish view and lead to the April peak at 133.48 being reached. Short Term Trend (1-3 weeks): Is sliding towards the May low at 124.62 around which it is likely to at least short-term stabilize. Long term trend (1-3 months): While the May low at 124.62 underpins, the July peak at 131.98 could be revisited with the 137.51 2018 high then being in focus. Failure at 124.62 would lead to the 120.00 region being eyed.”