EUR/JPY is heading to the top of its channel at 134.73 though RSI has not confirmed the new high. Therefore, the pair could struggle to extend its recent advance, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Uptrend at 131.19 underpins euro/yen

“EUR/JPY last week closed above 133.13/48, these were the highs from April 2018 and September 2018. We note the 13 count and that the daily RSI has not confirmed the new high and suspect that it may struggle to maintain its gains.”

“Initial resistance is the top of the channel at 134.73 and initial support is offered by its 20-day ma at 132.64. This guards the 6-month uptrend at 131.19. This is reinforced by the 55-day ma at 131.07 and while above here, a longer-term upside bias will remain.”

“Our longer-term target is the 137.51 2018 high.” 

“Nearby support is an accelerated uptrend at 132.80.”