EUR/JPY: Temporary weakness ahead of a retest of the eight-month channel top at 132.94 – Credit Suisse

EUR/JPY has found a floor as expected above its rising 55-day moving average and 61.8% retracement of the January/February rally at 129.81/130.13. Analysts at Credit Suisse look for a retest of the top of the eight-month downtrend channel from June last year at 132.94.

Support at 129.81 to hold for an eventual retest of the top of the down channel at 132.94

“We look for a fresh move higher with resistance seen at 131.84/88 initially, with a break above 132.24/36 needed to clear the way for a move back to the top of the eight-month channel at 132.94.” 

“A sustained move above the eight-month channel at 132.9 and then the 133.49 high of October last year should confirm a more important turn higher is underway, with resistance then seen next at the 2021 high at 134.14.”

“Support is seen at 130.88 initially, then 130.44/43, with 130.13/129.81 expected to remain a solid floor.”