EUR/JPY: Bear trend removed with ease, next meaningful resistance at 127.52/72 – Credit Suisse

EUR/JPY has seen a further impressive acceleration with the 50% retracement of the 2018/2020 bear trend at 125.94 removed with ease. Economists at Credit Suisse stay biased higher with the next meaningful resistance seen at the 127.52/72 2019 high.

Key quotes

“EUR/JPY has seen a further impressive acceleration higher after successfully holding a cluster of supports at 124.34/24, including its accelerated 13-day average, now at 124.87 and resistance at 125.94 has been cleared with ease – the 50% retracement of the 2018/2020 downtrend. This suggests the trend should stay directly higher with resistance seen at the April 2019 high at 126.84 next, with tougher resistance then seen next at 127.52/72 – the 2019 high and potential downtrend from late 2014.” 

“We would expect the 2019 high at 1.27.72 to prove a tougher initial barrier and would expect an initial pullback from here. A direct break though can see resistance next at the 61.8% retracement of the fall from 2018 at 128.67.” 

“Near-term support moves to 125.76, then 125.51, the 124.95/87 which ideally holds to keep the immediate risk higher A break can see a setback to 124.50/33, but with fresh buyers expected here.”