EUR/JPY to extend its decline towards 128.88/84 on a close below 55-DMA at 129.99 – Credit Suisse

EUR/JPY weakness has quickly accelerated again. A close below the 55-day moving average (DMA) at 129.99 should add further momentum to the decline, economists at Credit Suisse report.

Resistance at 130.92 set to cap

“A close below the 55-DMA at 129.99 should add further momentum to the decline with key support then seen next at the uptrend from May 2020 at 128.88/84.”

“Whilst we would look for an attempt to find a fresh floor 128.88/84, a closing break would warn of a more damaging turn lower with support then seen next at the January lows at 128.34/26.” 

“Resistance is seen at 129.99 initially, then 130.34, with the immediate risk seen staying lower whilst below 130.92.”