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EUR/JPY weakness last week has been contained by support from its 13-day average and the 38.2% retracement of the rally from early May at 117.08/116.94 and this suggests the base remains in place and the overall risk still higher, per Credit Suisse. 

Commerzbank’s Karen Jones also sees the EUR/JPY trading higher.

Key quotes

“Above 118.00/09, EUR/JPY should add further weight to the view of a base to turn the focus back onto key resistance at the 50% retracement of the Q1 collapse at 118.53/63, above which can then see resistance next at the April highs at 119.01/04. With the falling 200-day average not far above at 119.26, we would expect this to cap at first.” 

“Near-term support is seen at 117.29/27. A close below 116.94 is needed to see the base negated, with support then seen next at 116.58/46.”