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Economists at Credit Suisse continue to look for a clear break above the 2018 downtrend with the ‘measured base objective’ at 121.18. 

Key quotes

“EUR/JPY remains well supported above its 200-day average at 119.30 to leave the spotlight firmly back on the medium-term downtrend from September 2018 at 119.95/99. Although further consolidation should be allowed for here, with a base in place, we continue to look for a sustained move above in due course.”

“Above 119.99 should then see resistance next at 120.52, with the ‘measured base objective’ at 121.18, which also coincides with the March high. With the late February high not far above at 121.40, we would then look for this 121.18/40 zone to then cap and for a consolidation phase to emerge.” 

“Near-term support moves to 119.62, then the 200-day average and price support at 119.30/18, which we look to ideally hold. A break can see a deeper setback to the 13-day average at 118.48/41, but with better buyers expected here.”