EUR/JPY: Fresh effort to establish a floor at the 127.93/88 August lows – Credit Suisse

EUR/JPY has again held key support from the August lows at 127.93/88. The completion of a bullish “reversal day” adds weight to the potential for a floor, economists at Credit Suisse report.

Resistance seen at 129.08

“EUR/JPY has retested and again held key support from the 127.93/88 August lows and the subsequent completion of a bullish “reversal day” is seen adding weight to our view for a fresh floor here.”

“Near-term resistance moves to the 13-day exponential average and price resistance at 129.08, a close above which should further reinforce the case for a low, with resistance then seen next at a cluster of levels at 129.57/69, which includes the 55-day and 200-day averages.” 

“Support moves to 128.29/23 initially. Below 127.93/88 though would reassert the downtrend from early June with support seen next at 127.30 ahead of the 38.2% retracement of the entire 2020/2021 uptrend at 126.59.”