EUR/JPY falters ahead of June high at 124.43 to move below 122.00 mark – Commerzbank

EUR/JPY is trading at daily lows, below the 123.20 level, after having faced rejection at 124.24 on Thursday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has exited the pair long positions as she expects a move lower to the 20-DMA at 121.91 and even a test of the 121.55 uptrend support.

Key quotes

“EUR/JPY appears to be faltering just ahead of the June high at 124.43 and the 200-week ma at 124.75 and we are going to exit our remaining long positions for now.”

“We would allow for a dip back to the 20-day ma at 121.91 and possibly the 121.55 uptrend. We will retain our overall bullish outlook while the three month support line at 121.55 and, more importantly, the current July low at 120.28 underpin.” 

“The 200-week ma at 124.75 guards the 2014-2020 resistance line at 127.90.”