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EUR/JPY maintains its break of a cluster of key supports at 122.38/23 and analysts at Credit Suisse stay biased lower for the 200-day average (DMA) at 121.26/16.

Key quotes

“A poor week last week for EUR/JPY has seen the market remove with ease key support at 122.38/23 – the late September low, 38.2% retracement of the entire rally from the May low and 61.8% retracement of the rally from late June. This reinforces the existing top below 123.01 and we maintain our bearish view outlook with support seen next at 121.26/16 – the rising 200-day average and the back of broken trend support from June. We look for an attempt to then hold here. A closing break though would instead see the immediate risk stay lower with support seen next at the 50% retracement of the entire rally from May at 120.75/73.”

“Resistance moves to 122.46/50 initially, above which can ease the immediate downside bias for a move back to more important resistance, starting at 123.01 and stretching up to 123.21/25, which is expected to cap further strength.”