EUR/JPY weakness has accelerated further following the completion of a top. Analysts at Credit Suisse stay biased lower for a test of a cluster of what we see as more important supports at 129.59/36.
Resistance is seen at 131.38/48
“We stay biased lower for a test of what we see as a more important cluster of supports at 129.59/36 – the 23.6% retracement of the entire 2020/2021 bull trend, 38.2% retracement of the rally from last October and the key April lows. Our bias remains to look for a floor here.
“A direct break on a closing basis below 129.59/36 can see weakness extend further to the late March low at 128.29, potentially the 200-day average, now at 127.66.”
“Above 130.94 is needed to ease the immediate downside bias for a recovery back to 131.38/48, but with a fresh cap expected here for now. A break though can see strength extend back to the “neckline” to the top at 132.66/70.”