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EUR/JPY has maintained the break of the 2018-2020 downtrend at 121.74 and is now pointing to the 122.88 January high, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“EUR/JPY has broken above longer-term downtrends including the 2018-2020 downtrend at 121.74. It will be interesting to see if it can maintain this break for a weekly close above here and the 122.88 January high. This has been such a directional move the downtrend is exposed.” 

“Dips lower are likely to find initial support at 119.88 and be contained by the short term uptrend at 118.00.”

“Please note that May was a key month reversal and we should see a break higher – this would target the 124.42 55-week ma and the 130.65 200-week ma.”