EUR/JPY is at its long-term downtrend at 130.36 which should hold and provoke failure, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, informs.
“EUR/JPY is approaching two major levels of resistance directly overhead – the first is 130.33, the 200-month moving average and the second is the 130.36 2008-2021 resistance line. This should hold and provoke failure.”
“Initial support is the 127.50 7th January high and the uptrend at 127.60.”
“Key support near-term remains the October and November highs at 125.13/09.”
“Failure at 125.09 targets the 61.8% retracement at 123.87 and the seven-month uptrend at 123.94.”