EUR/JPY - Positive above uptrend - Commerzbank

Commerzbank Analyst Karen Jones says the short-term trend in EUR/JPY remains bullish, although gains could be capped for now by descending trendline hurdle of 137.18.

Key points

Short-Term Trend (1-3 weeks): Positive above uptrend, should remain capped for now by 137.18 downtrend.

Long-term trend (1-3 months): Is heading towards the 2008-2017 resistance line at 139.95.

EUR/JPY continues to rebound from the 2017-18 support line at 133.23, which held the initial test. Initial resistance lies at the 136.62 recent high ahead of the 137.18 downtrend from 1981. We would expect this to hold the topside. Dips will find initial support at 134.88/50 ahead of the 133.23 uptrend.