EUR/JPY: eyes on the July high at 131.98 - Commerzbank

Analysts at Commerzbank explained that EUR/JPY eased back to and was eroding its 20-day ma at 128.32.

Key Quotes:

"It will need to recover from this vicinity for to a re-test the 200-day ma, 55-week ma and the July high at 131.18/98 to remain viable."

"Elliott wave counts suggest that dips should now hold at circa 128.40-127.90."

"A move above the July high at 131.98 would re-target the 133.48 April peak. Below 127.90 would leave the market back on the defensive and suggest losses back to the 124.91 mid-August low."

"Only if support at 124.91/62 were to give way, would the area between the December 2016 high and the June 2017 low at 124.09/122.40 be back on the plate."