EUR/JPY to test the potential uptrend from May at 122.54 – Credit Suisse

EUR/JPY’s weakness is expected to extend to its potential uptrend from May at 122.54, where analysts at Credit Suisse look for a fresh attempt to find a floor. 

Key quotes

“EUR/JPY stays sidelined near-term but with the 13-day average at 123.49 still capping our immediate bias stays seen lower in the range with support seen at 123.00 initially, ahead of the 122.84 recent low and then the potential uptrend from May at 122.54, where we look for a fresh attempt to find a floor.” 

“Below the potential uptrend from May at 122.54 would warn of a move back to 122.22, then the 121.62 late October low, with real risk seen for an overshoot to the 200-day average, currently at 121.41. We continue to look for a better floor here.” 

“Resistance as flagged is seen at 123.49 initially, with the immediate risk now seen lower whilst below 123.72. Above can see strength back to 124.04, then 124.45/52, but with a move above here needed for a retest of more important resistance at 124.99/125.15.”