EUR/JPY has completed another bearish “outside day”. Economists at Credit Suisse stay biased lower for 128.29/19, then the 2021 low and major channel support at 127.51/21.
Resistance is seen at 130.10
“EUR/JPY has seen yet another large bearish ‘outside day’ to further reinforce its near-term top and prior “reversal day” and we look for this to keep the risk directly lower.”
“Support is seen initially at 128.56/55 ahead of the 78.6% retracement of the December/January rally and potential trend support at 128.29/19. Whilst we would look for this to hold at first, the broader risk is seen lower for an eventual break and a fresh test of what we see as more important support at the 2021 low and lower end of the medium-term channel at 127.51/21.”
“Resistance is seen at 129.39 initially, then 129.52, with the immediate risk seen staying lower whilst below 130.10. Above can see a recovery back to 130.47/57, but with fresh sellers expected here.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.