EUR/JPY: Intraday dips lower should find some support at circa 134.50 - Commerzbank

According to Karen Jones, Analyst at Commerzbank, the EUR/JPY cross is sustaining a break through key resistance near the 134.50/58 are and might now be headed towards the 2008-2017 resistance line at 140.11.

Key quotes:

“EUR/JPY has eroded major resistance offered by 134.50/58 – this is the high from November 2015 and also a double Fibonacci retracement.”

“This area was key short to medium term. The close above here introduces scope for a test of the 2008-2017 resistance line at 140.11.”

“While above the 2017-18 support line at 133.08 an upside bias persists. Below here should be enough to re-target the 131.16 November low.”

“Only a close below the 131.16 recent low would negate the up move and suggest losses to 128.50 and the 127.57 August low.”