EUR/JPY could slip back to 125.75 on a breakdown of 128.00 – Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could test the 125.75 region if 128.00 is cleared.

Key Quotes

“EUR/JPY is consolidating below the 55 day ma at 130.55 and downtrend at 131.01 – so far it is showing no sign of failure here. An erosion of 128.00 should be enough to trigger a slide back to 125.75, the last defence for the 124.62 recent low”.

“Near term should a break above the downtrend be seen, we are unable to rule out scope for further gains to the 131.34/48 May highs and possibly even for the 133.48 April peak”.

“Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00”.