EUR/JPY to enjoy substantial gains on a break above recent highs at 137.50/54 – Credit Suisse

EUR/JPY is moving sharply higher again. A break above 136.85 should see a retest of medium-term resistance from the 2018 and recent highs at 137.50/54, analysts at Credit Suisse report.

EUR/JPY set to retest medium-term resistance at 137.50/54

“We look for a break above 136.85 to clear the way for a retest of medium-term resistance from the 2018 and recent highs at 137.50/54. A closing break above here would mark a further significant break higher to open up further medium-term upside, with resistance seen next at 138.17, ahead of what we look to be tougher initial resistance at the August 2015 highs at 138.86/139.03.”

Support is seen at 136.07 initially, then 135.79, with 135.51 ideally holding to keep the immediate risk higher. Below can see a setback to support next at 135.16, potentially the 13-day exponential average at 134.78/67, but with buyers expected to show here.”