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EUR/JPY is holding the five-month uptrend at 123.57 after sliding from the 200-week ma at 125.22. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, targets the September low at 122.38 on a break below the mentioned uptrend while a break above the 125.29 resistance would open the way towards 126.93.

Key quotes

“EUR/JPY is holding below the 200-week ma at 125.22 but the market has yet to break below the five-month uptrend at 123.57 and has bounced from here. We will assume that the market is side lined.” 

“Below the uptrend we target 122.38, the September low and there is scope for the 200-day ma at 121.15.”

“Only a break above Fibonacci resistance at 125.29 would initiate a rechallenge of the 2014-2020 resistance line at 126.93, which we again would allow to hold.”