EUR/JPY gained 0.11% on Monday, ending a six-day losing streak, after nearing the uptrend at 124.34. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, recommends raising the stop to 124.30, partially cover 126.75 and exit the remainder 127.50.
Key quotes
“EUR/JPY has slipped back to and so far held over the four-month uptrend at 124.34. This suggests that the market remains capable of retesting the 126.75 peak from mid-August and the 2014-2020 resistance line lies at 127.53. A resistance line only connects two points and we have no strong bias on whether this will hold or not.”
“Please note that the intraday Elliott wave count is now negative and this implies that the four-month support line at 124.34 is exposed. Failure here would target the January high at 122.88. The latter guards the July low at 120.28.”
“Above the 127.53 downtrend we have the 200-month ma at 130.57.”