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Occasional bullish attempts in EUR/JPY are expected to meet resistance in the 119.32/120.05 region, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key Quotes

EUR/JPY last week sold off to and saw a strong recovery from support at the 117.55/52 August 12 and September 12 lows (this held on a closing basis ands in fact the market charted an outside day to the topside). Rallies will find resistance offered by the downtrend at 119.32 and this resistance is reinforced by 120.05, the 38.2% retracement. Very near term the intraday Elliott wave counts are neutral to positive and we may see a small rebound”.

“Further support can be seen at the 116.58/115.87 recent lows”.

“Above 120.05, resistance can be seen between the June lows at 120.79/96 as well as at the 121.38 late July high”.