EUR/JPY move lower should be corrective only – Commerzbank

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the ongoing downside in the cross should be considered as corrective only.

Key Quotes

“EUR/JPY remains on the defensive but the Elliott wave count continues to indicate that the move lower is corrective only. We remain unable to rule out further losses towards the 78.6% retracement at 126.66. This is the last defence for the 124.91 low”.

“In order to alleviate immediate downside pressure rallies will need to regain the 130.20 22nd October high”.