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Analysts at Commerzbank noted that EUR/JPY remains immediately bid following the recent erosion of its 55 day ma, the 2018 downtrend line and the 130.35 mid-June high and risks are on the topside.  

Key Quotes:

“The DMI has a buy signal and the market has broken above the daily cloud for the first time since February all are positive signals and we look for the 200 day ma at 131.95 to be tested.”

“We look for further gains to the 131.34/50 May highs and 55 week ma and the 133.48 April peak.”

“Where are we wrong near term? The market stays bid above the 128.41 support line and only below here would negate the topside and re-target the 124.62 May low.”

“Short Term Trend (1-3 weeks): Has reversed just ahead of support offered by the124.08 December 2016 high and the 50% retracement at 123.40. Long term trend (1-3 months): Approaching the 55 week ma at 131.50, which is now exposed. Targets the 137.51 2018 high.”