EUR/JPY could test 127.65 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of EUR/JPY to move higher to the 127.60 area.

Key Quotes

“The market is bid in its range. It continues to hold extremely well at 122.56/40, the 18th May low and the recent low, ahead of here lies the 123.80 2 month support line. We look for a retest of the recent range high at 125.81/80”.

“Above the 125.81 recent high will target the 2016-2017 channel at 127.65. Beyond this the market looks set for further gains towards the 129.55/130.71 50% retracement and the 200 week ma”.

“Below 122.40 and we should see losses extend to the 120.00 200 day ma. We suspect that it will attempt to stabilise in this vicinity”.