EUR/JPY: Above 122.13 sets a base for strength back to 124.44 - Credit Suisse

FXStreet reports that the Credit Suisse analyst team notes that EUR/JPY has cleared key resistance at 122.13, as currently sits around 122.30, to confirm a base to see the core trend turn higher again for an eventual move back to the 124.44 June high.

“EUR/JPY strength has continued after holding key price support at 120.32/27 for the expected break above pivotal resistance from the top of the sideways range of the past month at 121.96/122.13. This sees the looked for base established to see the core trend turn higher again with resistance seen next at the 61.8% retracement of the June fall at 122.48/51. Whilst a pause here should be allowed for, a break in due course can see resistance next at 123.52/62 and eventually the 124.44 June high.”

“Big picture, with our broader outlook for the EUR higher we look for a move above here in due course also, with resistance then seen next at 125.94 – the 50% retracement of the 2018/2020 downtrend.”

“Near-term support moves to 121.97, then 121.78, with 121.48/46 now ideally holding to keep the immediate risk higher. A break can see a retreat back into the range with support then seen next at 121.22, then 120.75.”