EUR/JPY: Sell-off continues, next stop at the 127.50 mark – Commerzbank

EUR/JPY’s sell-off has reached the March lows at 128.30/20. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to extend its slide to the 127.50 level.

Break above 55-DMA at 130.89 needed to reassert upside potential

“EUR/JPY’s sell-off has reached the March lows at 128.30/20 and the 55-week ma at 127.85. Below here lies the 127.50 February 2019 high and the 200-week ma at 125.97.”

“Initial resistance lies at the 20-day ma at 129.58 and 130.55 end of July high and only if the market regained the 55-day ma at 130.89 would we start to pay more attention to the upside.”