EUR/JPY: Scope to reach the 131.03/08 zone – Commerzbank

EUR/JPY continues to struggle around 130.55. But Karen Jones, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, still expects the pair to test the 131.03/08 neighborhood.

Nearby support is the 129.50/48 200-DMA

“EUR/JPY continues to struggle at 130.55, the end of July high (this is holding on a closing basis). There is scope to challenge the 50% retracement and mid-July high at 131.03/08, but we suspect that this will be the maximum upside we see at this point.”

“Only above 131.08 would introduce scope to 132.69/80, the 23rd June high and 78.6% retracement.”

“Nearby support is the 129.50/48 200-day ma ahead of the 128.60 mid-July low and 127.95, the recent low. This is reinforced by the 55-week ma at 128.11 and while above here an upside bias is maintained.”