EUR/JPY: where next, as 131.42 contains the downside within rising trend?

Currently, EUR/JPY is trading at 132.32, down -0.06% on the day, having posted a daily high at 132.77 and low at 132.09.

EUR/JPY is attempting a reversal of the downside seen in the strength of the yen on the previous hourly sticks today. Stocks take a hit with the Dow Jones down to levels seen during Monday's opening session and the start of the downturn of its four-day losing streak so far. EUR/JPY's double top was put into place on the 22nd September and the German election results keep a lid on any rallies that euro bull's attempt. However, for the cross, the risk-off environment involving geopolitical tensions keep the yen underpinned on the upside as well: Trump: Any military action would be “devastating” for N. Korea - RTRS

• ECB: Draghi cancels attendance of Bank of England event on Friday - Reuters

EUR/JPY levels

Analysts at Commerzbank noted that EUR/JPY has corrected back from the 134.32 Fibo (61.8% of the move down from 2014) and has sold off to and so far held over the 5-month uptrend at 131.42: 

"Provided that the uptrend at 131.42 contains the downside, the longer term up move will remain intact," the analysts argued, saying, however, that it should be noted that the intraday Elliott wave count is now negative and suggesting that the trendline will not hold. "Above 134.32/58 would target the 1979-2017 resistance line at 139.12. Where are we wrong near term? A move below the 55-day moving average is needed to alleviate upside pressure and retarget the 129.37 September low and the 127.57 August low."