EUR/JPY to soar toward 132.69 on a break above the 55-DMA at 130.16 – Commerzbank

EUR/JPY has reversed from the 55-week moving average at 127.99 and is currently testing the 55-day moving average (DMA) at 130.16. However, the pair may suffer a minor drop here before resuming its rise, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. 

Upside bias while above 55-week ma at 127.99

“EUR/JPY has rallied to and is currently probing the 55-DMA at 130.16, above here lies the end of July high at 130.55. We may see a minor dip back from here near term ahead of further gains.”

“Above 130.55 would imply recovery to 132.69.”

“Nearby support is the 128.60 mid-July low ahead of 127.95, the recent low. This is reinforced by the 55-week ma at 127.99 and while above here an upside bias is maintained.”