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EUR/JPY has reached the 2018-2020 downtrend at 121.74. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, believes the pair is set to break higher.

Key quotes 

“The reach of the 2018-2020 at 121.74 has been such a directional move the downtrend is exposed. Dips lower are likely to find initial support at 119.90 and be contained by the short-term uptrend at 117.82.” 

“Please note that May was a key month reversal and we should see a break higher – this would target the 124.42 55-week ma and the 130.65 200-week ma.”