EUR/JPY set to challenge the 129.97/59 support zone – Commerzbank

EUR/JPY remains muted on Wednesday. But the pair trades with a negative bias, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. EUR/JPY could slip back towards the March lows at 128.30/20.

Slightly negative bias below the 20-DMA at 132.73

“EUR/JPY’s outlook is negative, its topside remains capped by the 20-day ma at 132.73 and for now we have a slightly negative bias.”

“While capped here, we remain unable to rule out a retest of last week’s low at 130.05, made marginally above the February high and April low which can be seen at 129.97/59. Below here lie the March lows at 128.30/20 and the 200-day ma at 127.94.”

“Above last week's high at 132.69/73 will re-target 133.69/75 and the current June high at 134.12.”