EUR/JPY poised to recover the 131.26/98 band – Commerzbank

The cross could re-visit the 131.26/98 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has started to recover off its 20 day ma at 128.09 and we should see the market re-test the 200 day ma, 55 week ma and the July high at 131.26/98. Elliott wave counts suggest that dips should now hold at circa 128.40-127.90. A move above the July high at 131.98 would re-target the 133.48 April peak”.

“Below 127.90 would leave the market back on the defensive and suggest losses back to the 124.91 mid August low”.