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EUR/JPY weakness has been well supported as the pair has maintained its break above 124.44 June high, trading currently around the 124.85 level. Therefore, the core trend stays seen higher with analysts at Credit Suisse looking at the 125.94 mark.

Key quotes

“Although daily RSI momentum has as yet been unable to confirm the new high we maintain our upward bias and look for strength back to the 125.22/23 recent high. Above here can see trend resistance from January 2019 at 125.43 next, then what should be tougher initial resistance at 125.94 – the 50% retracement of the 2018/2020 downtrend. Whilst we would look for this to cap at first, a break in due course should see resistance at 126.84 next.” 

“Support moves to 124.61 initially, with a move below 124.32 needed to warn of a move back to 124.00 and then the 13 -day average and price support at 123.84/73, which we look to ideally hold. A break though would warn of a more concerted setback with support seen next at 123.33/27.”