Forex: EUR/JPY rebounding to 127.50

FXstreet.com (Barcelona) - The renewed strength of the Japanese yen continues to drive the cross lower on Friday, now attempting a rebound to the 127.45/50 region after dipping to weekly lows in the boundaries of 127.00.

“The market is sidelined below the 131.12 recent high, currently we are viewing this as the market taking a breather ahead of tackling this resistance. Our slightly longer term target is 136.71, the upside measurement from a wedge”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

The cross is now losing 1.16% at 127.63 and a breach of 127.15 (low Arp.18) would expose 126.45 (low Apr.17) and then 125.12 (Kijun line).
On the upside, resistance levels line up at 127.82 (Tenkan-Sen line) ahead of 129.08 (MA200h) and finally 129.37 (high Apr.26).