Bank of America Merrill Lynch Technical FX Strategy Research notes that the uptrend in EUR/JPY continues to stumble when attempting to make a weekly close through the 200wk SMA.
"It has come close on multiple occasions and failed, and so a tactical top may be forming.
The uptrend has not corrected in a while, and so dips to 128.44, and 127.50 could be healthy for the uptrend to build momentum and break 130 later this year.
Furthermore, a breakout would be considered bullish and our measured move next targets 135," BofAML argues.
Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article
