EUR/JPY to plummet towards the 125.39 mark on a break below support at 127.31 – Commerzbank

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.”