The following are the latest technical setups for EUR/USD, and USD/JPY as provided by the technical strategy team at Credit Suisse.
EURUSD has fallen sharply again to leave the immediate bias bearish to our core target at 1.0836/0765.
EURUSD fell sharply again post Thursday’s ECB meeting, easily removing the recent cycle low at 1.1460, the 1.1381 level, and directly removing the 61.8% retracement of the entire 2000/08 rise at 1.1212.
We allow for a bounce here, however, our core target remains lower at 1.0836/0765.
An overshoot to multi-year trend support at 1.0588 should be allowed for, but we would expect this to hold at first. Bigger picture though, we see scope for parity.
Resistance shows at 1.1455/60 initially then 1.1498/1500, with 1.1540/41 expected to cap to keep the trend directly lower. Above 1.1679/84 is needed to ease downside risks.
CS booked profit on EUR/USD short at 1.1215 and is currently flat on the pair.
USD/JPY: The immediate spotlight stays on 118.89/96, above which is needed to see scope for 119.81/120.00.
USDJPY remains capped below the recent highs at 118.89/96. A break above here is needed to resolve the range higher for strength towards the price and potential downtrend resistance at 119.81/120.00, where we would expect selling to show.
A direct overshoot though can see a move for 120.83/76, followed by the 2014 peak at 121.86.
Near-term support shows at 117.25/18. Below 116.93/85 is needed to see further weakness for 115.86, ahead of pivotal support at 115.57/46 which we would look to ideally hold. Strategy: Long at 117.80, stop below 117.00, for 119.95.
CS maintains a long USD/JPY from 117.80 targeting 119.95.
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