EUR/JPY: August 14 high at 127.00 is first key resistance - Commerzbank

Analysts at Commerzbank noted that last week EUR/JPY came close to the May low at 124.62 around which we anticipate to see some stabilization. 

Key Quotes:

"The cross is still trying to bounce off the current August low at 124.91. Resistance above the August 14 high at 127.00 comes in at the 128.96/129.35 early and late March lows. 

Were support at 124.91/62 to give way, the area between the December 2016 high and the June 2017 low at 124.09/122.40 could be reached."

Where are we wrong? 

"Only a rise above the July high at 131.98 would re-instate a bullish view and lead to the April peak at 133.48 being reached."

"Short Term Trend (1-3 weeks): Is sliding towards the May low at 124.62 around which it is likely to at least short-term stabilize."

"Long term trend (1-3 months): While the May low at 124.62 underpins, the July peak at 131.98 could be revisited with the 137.51 2018 high then being in focus. Failure at 124.62 would lead to the 120.00 region being eyed."