EUR/JPY bid above 118.45/54 – Commerzbank

EUR/JPY remains bid above the 118.45/54 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has eroded the 2015-16 downtrend line at 119.94, and has rallied to the 121.41/43, Fibo and 55 week ma, which it has also eroded. This is the break up point to the 124.77 38.2% retracement (of the move down from 2014)”.

“Dips lower will find initial support at 118.45/ 21st July 2016 high. The 200 day ma also is found here at 118.54 and while above here it is immediately bid”.

“Below here lies 116.37/29, this is where the September and October highs were made. We suspect that longer term the market is basing. This will only be confirmed however by a close above 120.16 on a weekly closing basis”.