EUR/JPY: 13 count on the daily signals a near term pullback - Commerzbank

Karen Jones, Analyst at Commerzbank, foresee a near-term profit-taking slide around the EUR/JPY cross, alebit maintains a bullish outlook for a more towards the 2008-2017 resistance line at 140.11.

Key quotes: 

“EUR/JPY’s rise above major resistance offered by 134.50/58 (high from November 2015 and also a double Fibonacci retracement) introduces scope for a test of the 2008-2018 downtrend at 140.20.”

“Near term we note the 13 count on the daily chart and would allow for some near term profit taking. Intraday dips lower should find some support at circa 134.50 (previous highs).”

“While above the 2017-18 support line at 132.91 an upside bias persists. Below here should be enough to re-target the 131.16 November low.”

“Only a close below the 131.16 recent low would negate the up move and suggest losses to 128.50 and the 127.57 August low.”