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EUR/JPY remains below its 55-day average at 124.79, keeping the immediate risk lower with support seen at 123.28/24, then more importantly at 123.03, the Credit Suisse analyst team informs.

Key quotes

“EUR/JPY remains under pressure after its failure to clear the 55-day average, currently seen at 124.79 and the immediate risk is seen lower within the broader range.” 

“Support is seen next at 123.28/24 ahead of the early October spike low at 123.03, which we look to try and hold to define the lower end of a near – term range. A break though would warn of a move back to retest the 122.38 late September low, with key retracement supports seen at 122.27/23 – including the 38.2% retracement of the entire rally from the May low – which we continue to look to remain a stronger floor.” 

“Above 123.98 is needed to ease the immediate downside bias for a move back to 124.16, then price resistance at 124.47/51. Beyond this latter area is needed to suggest the worst of the downturn has been seen for a retest of the 55-day average at 124.79. A close above here though remains needed to mark a resumption of the broader uptrend back to the 127.08 high.”