EUR/JPY runs out o steam ahead of the 134.12 June high, eyes a decline to 127.94/50 – Commerzbank

EUR/JPY’s near-term risks are on the downside. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to extend its move downward to the 127.94/50 region.

EUR/JPY target the 137.51 2018 high in the long-run

“EUR/JPY is faltering ahead of the 134.12 June peak and very near term we have some warning signals and have now initiated some near-term short positions.”

“Dips should find initial support at 130.74/46, the September highs and 128.74, the 6th October low and the 127.94/50, August and September lows and the February 2019 high.” 

“Longer-term, a break above the June peak is favoured, and will introduce scope to 137.51.”