- EUR/JPY bears looking for an extension on daily GMMA signals.
- Lows were not confirmed by the daily RSI.
The EUR/JPY cross is attempting to recover very near term while the lows had not been confirmed by the daily RSI. Analysts at Commerzbank had been warning of this and argued that the down move is over for now. "We have a second 13 count and TD support at 116.36," the analysts said.
Meanwhile, looking to the daily GMMA, there are no signs of a meaningful correction although the 4hr GMMA warns of a continuation of a meanwhile move higher to test territories of the 118 handle. The 20-day moving average is located at 118.22 that guards a run to 120.06 as the 25th July low. On the downside, 116.36 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 while below the downtrend," analysts at Commerzbank note.
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