2 Mar 2016
EUR/JPY: upside momentum could extend beyond 124.21 – Commerzbank
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the cross could visit 130.83/131.14 in case it clears 124.21.
Key Quotes
“EUR/JPY’s sell off has paused just ahead of 121.90, the 50% retracement of the move from 2012, this is our medium term target”.
“We note the divergence of the daily RSI and attention is currently on the 124.21 accelerated downtrend, this is now exposed”.
“The market will have to overcome this resistance to confirm near term reversal”.
“This would allow for further gains towards key resistance is the 130.83/131.14 downtrend – only above here would negate current downside pressure”.
Key Quotes
“EUR/JPY’s sell off has paused just ahead of 121.90, the 50% retracement of the move from 2012, this is our medium term target”.
“We note the divergence of the daily RSI and attention is currently on the 124.21 accelerated downtrend, this is now exposed”.
“The market will have to overcome this resistance to confirm near term reversal”.
“This would allow for further gains towards key resistance is the 130.83/131.14 downtrend – only above here would negate current downside pressure”.