EUR/JPY upside bias unchanged above 129.05 – Commerzbank

The cross is still expected to test 131.75 as long as the 129.05 level holds, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY has tested the 55 day ma at 129.23. While this together with the top of the daily cloud at 129.05 holds, the market maintains an upside bias and we will look for recovery back to the 200 day ma at 131.75. The market has recently broken above the daily cloud for the first time since February and we look for the 200 day ma and recent high at 131.75/98 to be eroded shortly. We look for further gains to the 133.48 April peak”.

“The market stays bid above the 129.23/05 55 day ma and cloud and only below here would negate the topside and re-target the 124.62 May low”.