EUR/JPY probes the 121.20 20-DMA to target the 200-week ma at 124.64 – Commerzbank

EUR/JPY trades at 120.711 and is probing the 20-day ma at 121.20. After this level, the pair should head the 200-week ma at 124.64, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“EUR/JPY rallied sharply higher yesterday and is again probing the 20-day ma at 121.20. We look for the market to stabilise here and recover further, and we should see the market once again retest the 200-week ma at 124.64. This guards the 128.212 2014-2020 resistance line.” 

“We continue to favour the topside as the market recently charted an outside day to the topside (or a bullish engulfing pattern) and recovered off the 200-day ma at 119.64 and the 50% retracement at 119.43.”