EUR/JPY: Buy the dips circa 134.10/133.75 - Commerzbank

Karen Jones, Analyst at Commerzbank, provides the trading strategy on the EUR/JPY cross, as we head into a quiet European session.

Key Quotes:

“EUR/JPY has eroded major resistance offered by 134.50/58 – this is high from November 2015 and also a double Fibonacci retracement. This level is key short to medium term - the close above here introduces scope for a test of the 2008-2017 resistance line at 140.46/141.06. Intraday dips lower are indicated to hold circa 134.10/133.75 While above the uptrend at 132.22 an upside bias persists. Below here should be enough to negate an upside bias and re-target the 131.16 recent low.“

“Where are we wrong near term? Only a close below the 131.16 recent low will confirm that the market has topped and confirm losses to 128.50 and the 127.57 August low.“

“Short Term Trend (1-3 weeks): Neutral to positive.”