EUR/JPY Technical Short term
CS notes that EURJPY has started the week in full retreat, which has seen it capitulate below the 120.54 price low, and this has set a top to leave the market undergoing a concerted test of the 38.2% retracement of the rally from late October at 119.71.
“Whilst we would expect this to hold at first, follow through below can then target what we expect to be stronger support at 118.73/54 – the price support and the 38.2% retracement of the June/December 2016 rise.
Resistance moves to 120.23 initially, then 120.68, with 121.02/09 ideally capping. Extension above here is needed to aim at 121.36, with a break above 121.76 needed to turn the trend higher again,” CS adds.