EUR/JPY targets 112.60 in the near term – Commerzbank

In opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, EUR/JPY could slip back towards the 112.60 area.

Key Quotes

“Post the French election result EUR/JPY strongly rallied above the 200 day moving average at 117.91 and shot up to today’s high at 120.93 (according to CQG data). Below this level and the 78.6% Fibonacci retracement at 121.16 it is to now consolidate. The gap with last week’s high from 119.00 to 117.81 is expected to be at least partially closed this week. Medium term the cross should still target the 112.62 October 2016 low and the 112.53 2012-2017 support line, which we look to hold and provoke reversal longer term, provided that no weekly close above the December high at 124.08 is made”.

“The erosion of the 117.50/35 the 2016-2017 uptrend is negative and we look for losses to its 112.53 5 year support line, which is expected to hold and provoke a reversal”.