Occasional bullish attempts in EUR/JPY are seen meeting a tough hurdle in the 121.34/80 band, in opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

“EUR/JPY is seeing a decent bounce from the 55 day ma, this is located at 119.47 currently. Rallies should find tougher resistance at 121.34/80. This is the location of the 200 day ma, the 50% Fibonacci retracement and the late July high. Currently the intraday Elliott wave counts are suggesting scope to retest this resistance, but if seen, it should again hold the topside. While capped here, attention remains on the 118.72 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”.