In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the downside bias remains on the cross while below the 130.83/131.08 band.
Key Quotes
“EUR/JPY has started to erode the short term downtrend at 123.81 today”.
“The recent sell off has paused just ahead of 121.90, the 50% retracement of the move from 2012, this is our medium term target”.
“We note the divergence of the daily RSI and attention is currently on the accelerated downtrend, this is now exposed”.
“The market will have to overcome this resistance on a closing basis to confirm near term reversal”.
“This would allow for further gains towards key resistance which is the 130.83/131.08 downtrend – only above here would negate current downside pressure”.
(Market News Provided by FXstreet)