EUR/JPY appears to have carved a base at 128.96 – Commerzbank

Karen Jones, Head of FICC Technical Analysis at Commerzbank, notes the cross could have based in the 129.00 neighbourhood.

Key Quotes

“No change. EUR/JPY is inching slowly higher and very near term holds upside potential but so far has not managed to overcome the 200 day ma at 132.14. The recent low at 128.96 was accompanied by a large divergence of the daily RSI and we suspect that we have based there. Resistance above the 200 day ma comes in at the 132.43/47 current March high and Fibonacci retracement. If bettered, the January low and February 21 highs at 133.05/09 would be on the cards together with the 134.25/61.8% retracement”.

“Below 128.96 would trigger a slide to the 127.27 August 2017 low and suggests scope for the 125.58/50% retracement of the move up from 2017 (not favoured)”.