EUR/JPY breaks through the key resistance at 135.88 – Commerzbank

Karen Jones, Analyst at Commerzbank, the EUR/JPY cross is set to test the 136.62 recent high, as it has managed to take-out the initial resistance located at 135.88.

Key Quotes:

“EUR/JPY continues to rebound from the 2017-18 support line at 133.17, which held the initial test. Initial resistance lies at 135.88 ahead of the 136.62 recent high and the 137.18 downtrend from 1981. We would expect this to hold the topside.”

“Beyond a retracement, the recent rise above major resistance offered by 134.50/58 (high from November 2015 and also a double Fibonacci retracement) introduces scope for a test of the 2008-2018 downtrend at 139.95/140.20.“

“Below the 133.17 uptrend should be enough to re-target the 131.16 November low. Only a close below here would negate the up move and suggest losses to 128.50 and the 127.57 August low.”