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EUR/JPY is eroding the 55-day ma at 124.75 but is expected to struggle here, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Key quotes

“EUR/JPY is again probing the 55-day ma at 124.75. We have seen a very slight erosion of this level, however, we also note the TD perfected set up on the daily chart and this suggests that the market should struggle to maintain gains.

“Should a close above the 55-day ma be seen this will reintroduce the idea of challenging the 2014-2020 resistance line at 127.08, which we again would allow to hold.”

“We have a support line at 123.00 ahead of 122.38, the September low.”