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EUR/JPY has reached major resistance in the 126.41-127.50 band, which is expected to cap the pair, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key quotes

“EUR/JPY last week reached a major resistance band offered by 126.41/127.50 – this is the location of the 2014-2020 resistance line, the 2020 high at 127.07 and the 2019 high – and we would allow for this to hold the initial test.”

“Dips should find nearby support at the October high at 125.09. Failure here is needed to alleviate immediate upside pressure and cast attention back to the November 19 low at 122.85 and the 121.63 October low.”