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Another strong session for EUR/JPY on Wednesday has seen the market close above important resistance at 117.77/83 – the late April and early May high and 50% retracement of the March/May fall, per Credit Suisse. Commerzbank also highlights the break of the late April high at 117.77.

Key quotes

“The break of the 177.77 resistance marks an important sea change to negate the large ‘triangle’ and instead sees an important base complete to turn the trend higher.” 

“We see resistance next at the 50% retracement of the Q1 collapse at 118.58/63, then the April highs at 119.01/04. With the falling 200-day average not far above at 119.26, we would expect this to cap at first.” 

“Support is seen at 117.58/52 initially, then 117.02, which we look to ideally now hold to maintain the base.”