EUR/JPY outlook remains negative – Commerzbank
In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the outlook on the cross remains negative for the time being.
“EUR/JPY bounced higher yesterday but overcome no resistance of note, leaving our overall negative outlook unchanged. It has failed 3 times in the past 2 months at 134.58 and this is viewed very negatively. We look for rallies to fail circa 132.50/75 and ideally we would like to see a close below the base of the cloud at 130.98 to confirm losses to 128.50 and the 127.57 August low”.
“Intraday Elliot wave counts are still suggesting scope to retest 134.58”.
“Above 134.58 November 2015 high. Above here would target the 2008-2017 resistance line at 140.72/141.00”.
“The market is now bid above the 131.39 recent low and the base of the cloud at 130.98”.