EUR/JPY to test the 200-DMA at 121.15 – Credit Suisse

EUR/JPY weakness has accelerated again to remove with ease a cluster of key supports at 122.38/23. Analysts at Credit Suisse stay biased lower for the 200-day average at 121.27/15, with the 50% retracement support just below at 120.73.

Key quotes

“EUR/JPY weakness has accelerated again for a break with ease below key support at 122.38/23. This reinforces the top below 123.01 and we maintain our bearish view outlook with support seen next at 121.27/15 – the rising 200-day average and the back of broken trend support from June. We look for an attempt to then hold here. A closing break though would instead see the immediate risk stay lower with support seen next at the 50% retracement of the entire rally from May at 120.75/73.” 

“Resistance moves to 122.27/27 initially, then, more importantly, starting at 122.88 and stretching up to 123.21/25, which is expected to cap further strength.”