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The EUR/JPY pair is under pressure following break of the trendline and continues to correct lower after hitting multi-year highs last week at 127.50. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks for a slump toward the 125.72 mid-December low.

Key quotes

“EUR/JPY remains under pressure following the failure at 127.50 2019 high and it is selling off following its break of the two-month uptrend. This is pretty tough resistance and attention is on downside.” 

“We look for a slide back to the 125.72 mid-December low. A close below here is needed to negate the upside and target support at the October and November highs at 125.13/09. This guards the 50% retracement at 124.56 then the November 19 low at 122.85 and the October low at 121.63.”