EUR/JPY: Weakness stays seen as corrective ahead of strength to 128.67/70 – Credit Suisse

The EUR/JPY pair remains well supported and despite a bearish “reversal day” analysts at Credit Suisse look for support at 127.33/30 to ideally hold for strength to 128.67/70 and eventually 130.16. 

Key quotes

“EUR/JPY weakness has been contained at 127.33/30 and despite the recent “reversal day” weakness stays seen as a temporary pullback prior to the rally resuming in due course. Above 127.98 remains needed to add weight to this view to clear the way for a move back to 128.37/47, then the ‘measured base objective’ and 61.8% retracement of the 2018/2020 bear trend at 128.67/70. Whilst we would look for a cap here at first, above in due course should see the ‘measured triangle objective’ at 130.13/16.” 

“Support moves to 127.63 initially, then 127.44, with 127.33/30 now ideally holding. Below can see a deeper setback to the medium-term uptrend at 126.89/84, but with a better floor expected here.”