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  • EUR/JPY attempting to base near term underpinned by the close above 120.05.
  • The 55-day ma at 118.32/28 is a near term support target.

After overcoming the 6-month downtrend at 118.77 and recovering  from 116.58/115.87 recent swing lows, EUR/JPY broke higher on the 120 handle with a look in on the 121 handle, testing the 121.35 highs, landing a few pips from the  121.38 late July highs. “The market is possibly attempting to base near term and the close above 120.05 adds weight
to that view,” analysts at Commerzbank said.

The next stop  for the bulls will be the  200-day moving average of 122.26. “We note the 13 count on the 240-minute chart, but pullbacks are indicated as likely to hold 119.40/118.80. Dips lower will find support at the 55-day ma at 118.32/28 ahead of the 117.49 uptrend,” the analysts at Commerzbank argued. Further out, on the wide, bears can target 115.87 ahead of the 2017 low at 114.86.

EUR/JPY daily levels