EUR/JPY could slip back to 121.15/119.45 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the cross could return to the 121.15/119.45 area.

Key Quotes

“EUR/JPY is side lined and relatively neutral. It is possible that we will see a deeper corrective retracement back towards 121.15/119.45 zone – but from here we should see recovery. Below here lies the 118.45/ 21st July 2016 high and the 200 day ma at 118.08 and while above here it is immediately bid. Intraday Elliott counts are implying that dips will hold circa 122.00”.

“The market reached a peak of 124.08 on the 15th December and this together with the 124.77 38.2% retracement (of the move down from 2014) and the 125.89 2015-2016 resistance line, is expected to act as critical resistance/break up point”.