EUR/JPY risks a test of 109.30 – Commerzbank

The cross could seen another test of recent lows in the 109.30 area, according to Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“EUR/JPY held sideways yesterday but remains under pressure having failed recently just ahead of the 115.51 16th June low. The intraday Elliott wave is suggesting that the rally has failed at 114.80 and we look for a retest of the 109.30 spike low. We note the 60 minute 13 count but expect rebounds to remain shallow”.

“The next major support of note below here is 106.00, the 78.6% retracement of the move 2012 to 2014 and we now have to assume that a slide back to here is on the cards. The August 2010 low at 105.44 is also found here. This is the last defence for the 94.12 July 2012 low”.