EUR/JPY could slip back to 130.81 – Commerzbank

In light of the recent price action, the cross could now recede to the 130.81 level, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has failed at the top of the cloud at 133.24 and this provoked some profit taking last week. The market has eroded its near term uptrend and we would allow for a slide to the base of the cloud, currently at 130.81. Initial support is the 131.82 12th April low”.

“Beyond this near term correction lower we should see gains to the 134.18/61.8% retracement”.

“Below the March low at 128.96 targets the 127.57 August 2017 low and the 50% retracement at 126.18 50% retracement”.