EUR/JPY high at the 130.33/36 neighborhood has not been confirmed by the RSI and Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, has doubts that the market is ready to break higher.
“EUR/JPY has eased above two major levels of resistance yesterday – namely 130.33, the 200-month moving average and the 130.36 2008-2021 resistance line. These have not yet been breached on a closing basis and we now have some divergence of the daily RSI.”
“Initial support is the 20-day ma at 129.26 and the uptrend lies at 127.92. Below here lies the January high at 127.50 and key support near term remains the October and November highs at 125.13/09.”
“Failure at 125.09 targets the 61.8% retracement at 123.87 and the seven-month uptrend at 124.06.”