EUR/JPY: headed to 134.32, Fibo 61.8%?

Currently, EUR/JPY is trading at 132.27, down -0.44% on the day, having posted a daily high at 133.10 and low at 132.19.

Wall Street has continued to print fresh highs and the yen has been relatively robust considering, with EUR/JPY -0.44% on the session regardless.

An encouraging report on Japan’s quarterly Tankan business sentiment survey that surged to its highest in a decade, helped support the Yen with the main index for Q3 up to 22 from previous 17, a signal that the economic recovery is expanding in Japan. In stark contrast, the European PMI's were a disappointment and to couple with the bearishness, the political fallout in Spain is a weight on the single currency. 

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EUR/JPY levels

Analysts at Commerzbank explained that the cross held over the six-month uptrend line at 131.85, arguing, that provided that the uptrend contains the downside, the longer term up move will remain intact and re-challenge the 134.32 Fibo 61.8% of the move down from 2014.

"However it should be noted that the intraday Elliott wave counts are conflicting and caution is warranted and we would keep stops tight. Above 134.32/58 would target the 1979-2017 resistance line at 139.12," warned the analysts at Commerzbank.