Forex Flash: EUR/JPY upside prevails while above 121.50 – Commerzbank

The pair is suffering the opposite forces from the single currency and the Japanese yen, as the European currency remains under heavy pressure after yesterday’s FOMC minutes while the latter is well bid in today’s context of increased risk aversion.

“The potential bull flag remains viable and while under pinned by trend line support at 121.50 an upside bias will remain. Near term resistance lies 125.59 (top of the potential flag), a break above here would cast attention back to the key resistance at 127.71/93”, explained Karen Jones, Head of FICC Technical Analysis at Commerzbank.