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EUR/JPY is testing the current December high at 126.73 and is poised to look for the September high which sits at 127.07, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.   

Key quotes

“EUR/JPY revisits major resistance at 126.53/127.50. It is comprised of the 2014-2020 downtrend line as well as the 2019 and 2020 highs. The current December high at 126.73 is about to be reached, as is the mid-August high at 126.75 above which lies the September peak at 127.07.” 

“We will retain a bullish bias while the current December low at 125.72 underpins. Further nearby support comes in at the October and November highs at 125.13/09. Failure at 125.09 is needed to alleviate immediate upside pressure and cast attention back to the November 19 low at 122.85 and the October low at 121.63.”