EUR/JPY eroded 38.2% retracement resistance

by Commerzbank

Karen Jones, analyst at the Commerzbank suggests buy dips at 102.20 and 101.10, with stops below 100.30. The bullish suggestion comes from the erosion of a key resistance.

“EUR/JPY has eroded key short term resistance at 102.55/60 (38.2% retracement of the move down from the October peak) and in doing so introduces scope to 104.30, the 50% retracement of the move down from November. There is room for a move now to the 200 day MA at 107.72”, wrote Jones.

Support for this bullish view is at 20-day MA, currently at 100.33, and then follows 98.60 (61% Fib).

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