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EUR/JPY’s strength is expected to stall around major resistance at 122.87, according to Credit Suisse analysts. Commerzbank’s is also focused on the mentioned resistance.

Key quotes of Credit Suisse

“EUR/JPY has seen strength extend as expected to test medium-term resistance at 122.52/87 – the high for the year from January and ‘neckline’ to a much more significant base. With further significant resistance seen not far above at 123.21 – the 38.2% retracement of the entire 2018/2020 bear trend – and then July 2019 high at 123.36, we look for strength to stall on the first challenge of this 122.87/123.26 zone and for a retracement lower to emerge.” 

“Big picture, above 123.36 (and probably even 122.87 would be enough) would see a medium-term base established to mark a more significant turn higher, with resistance next at 125.94.” 

“Support for a setback is seen at 122.04 initially, below which can see support next at 121.37/26.”