EUR/JPY: Has eroded major resistance/broken higher from its range - Commerzbank

Intraday dips in the EUR/JPY cross should find some support circa 134.50, writes Karen Jones, Analyst at Commerzbank.

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 level was key short to medium term - the close above here introduces scope for a test of the 2008-2017 resistance line at 140.20/141.12.”

“While above the uptrend at 132.70 an upside bias persists. Below here should be enough to re-target the 131.16 recent low.”

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