The EUR/JPY it is selling towards its five-month uptrend at 123.39, which is expected to hold initially. A break below here would open the way towards the September low of 122.38 and potentially towards the 200-day moving average at 121.08, as reported. Karen Jones, Head of the Technical Analysis Research team at Commerzbank.
“The EUR / JPY is under pressure after the recent failure at the 200 week ma at 125.21. The market has sold back towards the uptrend at 123.39, which would allow us to maintain the initial test. A failure here will target 122.38, the September low and there is scope for the 200-day ma at 121.08. ”
“If a close above the 61.8% retracement at 125.29 is observed, this will reintroduce the idea of challenging the 2014-2020 resistance line at 127.00, which we would again allow to hold.”
Credits: Forex Street