Forex Flash: EUR/JPY set to react back to 118.74 February low - Commerzbank

FXstreet.com (Barcelona) - Commerzbank analysts see the EUR/JPY set to react back to the 118.74 February low, but it has to hold for medium term upside pressure to be maintained. “The Elliott wave count on the daily chart is indicating that this support will hold for recovery and this is also the base of the cloud (118.82)”, wrote analyst Karen Jones, pointing to initial resistance at near term resistance line at 121.58 ahead of 122.66/85 (20 and 55 day ma) which guards the March high at 126.03 and the 127.71 February high. “Directly overhead lies tough resistance at 127.95/129.60, the March 2010 high and the 78.6% retracement of the move down from 2009. Below 118.38 the 16th January low is 116.47”, they added.