EUR/JPY: Break below 129.57/52 to increase the risk of a top – Credit Suisse

EUR/JPY has been unable to hold its move to new highs and below 129.70/52 would rekindle thoughts of a potential topping process, analysts at Credit Suisse appraise.

See: EUR/JPY's spike higher looks exhaustive, attention reverts to 129.40 – Commerzbank

The aggressive rejection of new highs rekindles thoughts of a topping process

“With daily RSI momentum continuing to fall steadily the uptrend continues to lose momentum and thoughts of a potential topping process have been rekindled.”

“Key near-term support remains seen at 129.70/52, below which can add further weight to this view for a fall back to the 55-day average at 129.09. A close below here would then be seen as the trigger for a test of more important price and ‘neckline’ support at 128.43/29, below which would in our view see an important top established.”

“Resistance is seen at 130.19 initially, with a break back above 130.74 needed to reassert an upward bias for strength back to 130.98/131.00 en route to the 61.8% retracement of the entire 2018/2020 bear trend at 132.55.”