EUR/JPY: Further deterioration in store - Natixis

According to Micaella Feldstein, Research Analyst at Natixis, caution is in order as the EUR/JPY cross is flirting with the support at 119.61 (weekly Bollinger moving average).

Key Quotes

“Note that a break below this threshold would signal further deterioration in the technical pattern, undermining the prospects for a significant rally in the coming days.”

“It would indeed pave the way for a new leg lower to 118.50 (38.2% Fibonacci retracement of 109.53-124.12 upside wave / june 16-dec 16) last threshold ahead of 117.35-117.50 (Fibonacci extensions) and 116.20-116.30 (declining trendline). The resistances stand at 120.25120.34 at 120.88-121, at 121.36-121.44 and at 122.85.”