EUR/JPY: Vulnerable below the 132.06 support line - Commerzbank

Karen Jones, Analyst at Commerzbank, offers her technical view on the EUR/JPY cross for the day ahead.

Key Quotes:

“EUR/JPY has aggressively sold off in the range and is approaching the 132.06 support line, this is starting to look exposed – the intraday Elliott wave counts have turned negative and as a consequence, we will attempt to exit our long positions. While above the uptrend it remains capable of retesting the recent high at 134.50/58 – this is the high from November 2015 and also a double Fibonacci retracement.”

“This level is key short to medium term - a close above here will introduce scope for a test of the 2008-2017 resistance line at 140.46/141.06. Currently, it is bid in its range above the 131.96 uptrend.”