EUR/JPY re-focused on 123.71/124.08 – Commerzbank

Following the recent price action, the cross should shift its attention to the 123.71/124.08 area, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has sold off to cloud support at 121.30 and the 55 day ma at 121.10 and is seeing a decent rebound from here. We should now re focus on the top of the range circa 123.71/124.08 (15th Dec high). Above 124.08 lies the 124.77 38.2% retracement (of the move down from 2014) and the 125.22 2015-2016 resistance line, is expected to act as critical resistance/break up point”.

“Failure at the 55 day would allow slippage to the 120.55 January low and Fibo support at 119.70, where we would expect it to again attempt to stabilise”.