EUR/JPY strong resistance lies at 119.88 - Commerzbank

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the next relevant resistance in the cross is located around 119.90.

Key Quotes

“EUR/JPY last week tried to erode the 116.37 September high, but has not really cleared this level. A rise and daily close above the 116.37 September high is needed to imply that the cross has based short term. Key resistance remains the 2014-2016 downtrend at 119.88. (not shown on this chart). Initial support lies 114.55, the 55 day ma and while above here the market will remain immediately bid”.

“Failure here will see attention revert to the bottom of the converging range, which is the 5 month uptrend at 113.24. Below here lies the 21st September low at 112.08 and the 78.6% retracement at 111.26”.