EUR/JPY probes key support at 127.94/50 below which lies the 125.67 mark – Commerzbank

EUR/JPY is weighing on the 127.94/50 support zone. A break below here would open up the 200-week moving average at 125.67, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

The Japanese yen is staging a short-term comeback

“EUR/JPY is revisiting the 127.94/50 August and September lows as well as February 2019 high. The cross is at critical support here and, if slipped through, will most likely target the 200-week ma at 125.67.” 

“Immediate downside pressure should be maintained below the 129.60 November 23 high.”

“Key resistance remains the short-term downtrend at 131.14 and while capped here a negative bias will persist.” 

“Resistance above 129.60 lies at 130.00 and then 130.38, the 55-day ma.”