EUR/JPY: Above 117.77/83 would mark an important base – Credit Suisse

Analysts at Credit Suisse look for a test of the 55-day average at 117.55, potentially the 117.77/83 key highs.

Key quotes

“EUR/JPY has seen a sharp acceleration higher, clearing with ease its high of last week at 116.92/117.02 to test the 55-day average, currently at 117.55. With further important resistance seen starting here and stretching up to 117.77/83 – the late April and early May high, 38.2% retracement of the Q1 fall and 50% retracement of the March/May fall – we look for this to then cap and for the risk to turn lower again.”

“Above 117.83 though would negate the large ‘triangle’ and instead see an important base complete to turn the trend higher, with resistance next at 118.58/63.” 

“Support is seen at 117.35 initially, then 117.02, below which is needed to ease the immediate upside bias for a fall back to the 13-day average at 116.34/30.”