EUR/JPY downside risks picking up pace – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees downside risks stay on the rise around the cross.

Key Quotes

“EUR/JPY we suspect the formation developing is a possible Resistance line at 132.22 megaphone top – these are difficult to trade. Marginal new highs are not sustained and the market swings sharply back into the range –risks are growing on the downside. Attention is on the 55 day moving average, now at 129.32. Below here will target the 127.57 August low”.

“A drop below the 127.57/46 late June and current August lows would allow for slippage to the May high at 125.81”.

“Above 132.24/45 (August 2015 low and January 2016 high) would re-introduce the 134.32/61.8% of the move down from 2014”.