Karen Jones, Analyst at Commerzbank, offers her view on trading EUR/JPY in the near-term.

“EUR/JPY’s outlook remains negative following its failure at its 5-month downtrend, currently at 120.88. This is reinforced by resistance at 121.45/48 - this is the location of the 200-day ma, the 50% Fibonacci retracement and the late October high. While capped here, attention remains on the 119.38 uptrend. This should hold the initial test, however longer term the risk has increased for a break lower. Failure here will target the 117.09 October low ahead of the 115.87 September low.”