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According to the Credit Suisse analyst team, the EUR/JPY pair is expected to see a sustained move above its 55-day average to reinforce its base for an eventual move back to the 127.08 September high. 

See – EUR/JPY to see further gains on a break above 124.75 – Commerzbank

Key quotes

“EUR/JPY remains well supported at 123.86/84 as expected and is seeing a fresh and concerted challenge on its 55-day average and 50% retracement of the September fall at 124.72/74. With a base in place, we continue to look for a clear and sustained move above here to reinforce the base and resumption of the broader uptrend resumed.” 

“We see the next resistance at the 61.8% retracement and price resistance at 125.28/32, ahead of 126.46 and eventually the 127.08/11 high and long-term downtrend from late 2014, where we would expect fresh sellers to show.” 

“Support moves to 124.61 initially, with 123.86/84 ideally still holding to keep the immediate risk higher. A break can see a fall back to 123.28, and with 123.03 needed to be removed to mark a more important failure and a move back to 122.38/23.”