EUR/JPY: Easing back from major resistance at 134.50/58 - Commerzbank
"We are still no clearer on direction for this. EUR/JPY last week again sold off from the recent high 134.50/58 – this is the high from November 2015 and also a double Fibonacci retracement," explains Karen Jones, Head of FICC Technical Analysis at Commerzbank.
This level is key short to medium term - a close above here will introduce scope for a test of the 2008-2017 resistance line at 140.46/141.06. Currently it remains in the middle of its recent range. Only a close below the 131.16 recent low and the 130.81 support line will confirm that the market has topped.
A close below the base of the cloud at 130.98 would confirm losses to 128.50 and the 127.57 August low.
- Short Term Trend (1-3 weeks): Neutral.
- Long term trend (1-3 months): Neutral.