Search ForexCrunch

EUR/JPY holds a bearish “reversal day” and now also a near-term top and analysts at Credit Suisse look for further weakness to the medium-term uptrend at 128.37/30.

Key quotes

“With a bearish RSI momentum divergence, we look for this to open the door to a corrective phase lower. We see support at 128.78/74 initially, then the 38.2% retracement of the rally from January at 128.54.”

“Whilst we would look for the 128.54 mark to hold at first, below in due course can see the ‘measured top objective’ and medium-term uptrend at 128.37/30. Whilst a hold here will be looked for a break can raise the prospect of a more significant breakdown, with support seen next at the 55-day average at 127.68/64.”  

“Resistance is seen at 129.50 initially, then 129.69, with a break above 130.00 needed to see the top neutralized for a move back to 130.68/71.”