EUR/JPY upside capped at 120.17 - Commerzbank

Senior Technical Analyst at Commerzbank Axel Rudolph expects the upside in the cross to be capped at 120.17.

Key Quotes

“EUR/JPY rose above the 2014-2016 downtrend at 119.58 and reached the 2015-16 downtrend line which we expect to cap. Initial support lies at 116.37/29. It is where the September and October highs were made. Below these levels meanders the 55 day ma at 115.02. While above here the market will remain bid”.

“Failure at the 55 day ma will see attention revert to the five month uptrend at 113.60”.

“We suspect that longer term the market is basing but that will only be confirmed by a close above 120.17 on a weekly closing basis. In this case the 55 week moving average at 121.62 would be in focus”.

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