EUR/JPY is heading towards the 2008-2017 resistance line at 140.11 - Commerzbank

Axel Rudolph, Senior Analyst at Commerzbank, holds the view that the EUR/JPY cross could accelerate higher towards the long term downtrend sloping trend-line resistance at 140.11.

Key quotes: 

“EUR/JPY’s rise above major resistance offered by 134.50/58 (high from November 2015 and also a double Fibonacci retracement) introduces scope for a test of the 2008-2018 downtrend at 140.11. Intraday dips lower should find some support at circa 134.50.”

“While above the 2017-18 support line at 133.13 an upside bias persists. Below here should be enough to re-target the 131.16 November low.”

“Only a close below the 131.16 recent low would negate the up move and suggest losses to 128.50 and the 127.57 August low.”