EUR/JPY: faltering ahead of major downtrend - Commerzbank

According to Karen Jones, Analyst at Commerzbank, expects the EUR/JPY cross to remain capped at 137.18 on the back of some visible divergence on the weekly RSI. 

Key quotes:

“EUR/JPY is facing tough resistance offered by the 136.62 recent high and the 137.18 downtrend from 1981. We would expect this to hold the topside. Dips will find initial support at 134.88/50 ahead of the 133.50 uptrend.”

“Below the 133.50 uptrend and the 133.09 January low should be enough to re-target the 131.16 November low. Only a close below here would negate the up move and suggest losses to 128.50 and the 127.57 August low.”