EUR/JPY to advance considerably towards the 132.55 mark – Credit Suisse

EUR/JPY has surged sharply higher again and analysts at Credit Suisse stay bullish for the 130.13/16 “measured triangle objective” and now they think higher to 132.55.

Key quotes

“EUR/JPY has surged higher again for a move with ease above the ‘measured base objective’ and 61.8% retracement of the 2018/2020 bear trend at 128.67/70, leaving the market on course for its “measured triangle objective” at 130.13/16.” 

“Although a fresh pause should be allowed at 130.13/16, we see no reason not to look for this to be cleared also to open the door to a move to 131.26 next and then 132.55 – the 78.6% retracement of the entire 2018/2020 bear trend. With the key September 2018 high not far above at 133.13, we would then look for a more important cap here and consolidation.” 

“Support moves to 128.76 initially, then 128.39, below which can ease the immediate upside bias for a fall back to 128.08, but with a cluster of supports at 127.77/50 then ideally holding any further weakness.”