EUR/JPY has reached the 55-week moving average at 128.21. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to stabilize above the 2020- 2021 support line at 127.31.
Negative bias while below 130.25/55
“EUR/JPY has reached the 55-week ma at 128.21 and is seeing a small bounce higher, directly below here lies the 127.94 August low. We would allow for some profit-taking between here and the 2020-2021 support line at 127.31.”
“Below 127.31 would introduce scope to the 200-week ma at 125.39.”
“Rallies should remain capped 130.25/55 for a negative bias to be maintained.”