EUR/JPY slids through the three-month support line at 121.32 – Commerzbank

EUR/JPY has lost the three-month support line at 121.32 and is currently trading at 120.32, down -0.54% on a day, around levels seen for last time at the end of June. Although the short-term outlook is now bearish, Commerzbank’s Axel Rudolph expects the pair to reach the mid-June high at 122.11 if EUR/JPY holds above 119.77/31.

Key quotes

“EUR/JPY’s outlook changed to a short-term bearish one now that the three-month support line at 121.32 has been slipped through.” 

“While the 200-day moving average at 119.77 and the June low at 119.31 hold, though, we are still looking for the cross to recover further and expect the mid-June high at 122.11 to eventually be reached. Further up the 200-week moving average can be seen at 124.67 and it may also eventually be revisited. It guards the 2014-2020 resistance line at 128.15.”