EUR/JPY has confirmed a top beneath the twin 124.44 lows with support seen next at the 50% retracement at 123.19 and then more importantly at the 38.2% retracement of the entire rally from May at 122.27/23, per Credit Suisse.
“EUR/JPY has brushed aside key support from the twin 124.44 lows of late August and earlier this month to see the warned of top established, with support from the 55-day average and 38.2% retracement of the rally from late June also removed with ease. This should confirm an important turn lower has taken place with support seen next at the 50% retracement at 123.19, ahead of price support at 122.84 and then more importantly at 122.27/23 - the 38.2% retracement of the entire rally from May and 61.8% retracement of the rally from late June. With the ‘“measured top objective’ seen not far below here at 121.80, we would look for a fresh floor here.”
“Resistance is seen at 123.83 initially then 124.10, with the ‘neckline’ to the top at 124.44 now ideally capping. A recovery back above 125.02/08 today though is needed to warn of a false break lower.”
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