EUR/JPY to move back higher towards 129.54/61 – Credit Suisse

EUR/JPY has again held key channel support from early June, now seen at 127.45. With daily RSI momentum holding a bullish divergence, analysts at Credit Suisse look for a base to be established for a recovery back to 129.54/61.

Key support remains at 127.49/45

“Resistance moves to 128.96 initially, above which should see resistance next at the 13-day exponential average at 129.18. A close above here is needed to add weight to a basing story with resistance seen next at the late November reaction high at 129.54/61, with the 38.2% retracement of the October/November fall just above at 129.78.” 

“Support moves to 128.36 initially, with a break below 128.19 needed to warn of a fresh move back into the 127.93/45 zone, but with a fresh floor expected here. A closing break below here though would mark a large and important top to mark a more significant change of trend lower.”