EUR/JPY weakness has been well supported above its 13-day exponential average to leave the spotlight firmly back on 132.55 – the 78.6% retracement of the 2018/2020 bear trend. Economists at Credit Suisse look for a clear break above here for a test of price resistance from the key highs of April and September 2018 at 133.13/49.
Support is seen at 131.67
“A closing break above the 78.6% retracement of the entire 2018/2020 bear trend at 132.55 can bring the brief consolidation to an end to reinforce the broader uptrend, with resistance seen next at the September 2018 highs at 133.12/13, potentially as far as the 133.49 high of April 2018, with another temporary cap expected for now in this 133.13/49 zone.”
“We eventually see scope for a move to the 137.50 2018 high.”
“Near-term support moves to 132.23/13, below which can see a fall back to 131.99, but with 131.67 now ideally holding further weakness. A break though would set a minor top with support then seen next at 131.41/37.”