EUR/JPY to see a fresh move higher with resistance seen at 127.08 – Credit Suisse

EUR/JPY maintains a large base and is expected to see a clear break above its long-term downtrend from 2018 around 126.54 with next resistance at 127.08, analysts at Credit Suisse report.

Key quotes

“Consolidation extends at the long-term downtrend from 2018 around 126.54, but with the market still well supported in our view. Indeed, with a large ‘head & shoulders’ base in place above the October and November highs at 124.99/125.18 – we remain of the view a more important trend higher is underway.” 

“Above 126.67/69 should reassert the uptrend with resistance then seen next at the 127.08 September high, above which should add further momentum to the uptrend with resistance then seen next at 127.52 and with the ‘measured base objective’ seen higher at 128.70.” 

“Support moves to 126.05 initially, then 125.93, with a break below 125.78 needed to ease the immediate upside bias for a deeper setback to the ‘neckline’ to the base at 125.19/08, but with this ideally holding any further weakness.”