In opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the cross keeps the negative bias well in place for the time being.

“EUR/JPY is seeing a minor consolidation at the low of 117.67, but no resistance of note has been overcome, leaving the market well placed for another leg lower. This guards the 114.86 2017 low. The break lower last week saw the market erode a 2012-2019 support line and this leaves a negative bias entrenched. Rallies will now find initial resistance at the 120.06 25th July low and the 20 day ma at 120.04. Key short term resistance is the 55 day ma and the 3 month downtrend at 121.27/37. The market will need to regain this to reassert upside interest”.