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EUR/JPY is seeing its expected near-term consolidation beneath its April 2019 high at 126.84, but with an eventual break expected for a test of more meaningful resistance at 127.52/68 – the 2019 high and potential downtrend from late 2014, economists at Credit Suisse report.

Key quotes

“With high-level price support at 125.75 holding weakness stays seen as corrective ahead of a break-in due course for a test of what should be tougher resistance then seen next at 127.52/68 – the 2019 high and potential downtrend from late 2014. We would expect this to prove a tougher initial barrier and would expect an initial pullback from here. A direct break though can see resistance next at the 61.8% retracement of the fall from 2018 at 128.67.” 

“Near-term support moves to 126.11. Below 125.75 would warn of a deeper retracement lower with support seen next at 125.59/51, then the 13-day average at 125.23/17, ahead of which we would look for fresh buyers to show.”