EUR/JPY weakness has accelerated dramatically also and its “measured top objective” at 131.10 has already been achieved. Economists at Credit Suisse stay biased lower for a test of a cluster of what we see as more important supports at 129.59/36.
Resistance is seen at 131.44 initially
“We are seeing little in the way of a bounce though and a clear break of price support at 130.98 should see the risk stay directly lower. We would then see support next at 130.21 ahead of what we see as a more important cluster of supports at 129.59/36 – the 23.6% retracement of the entire 2020/2021 bull trend, 38.2% retracement of the rally from last October and the key April lows.”
“Resistance is seen initially at 131.44, above which can ease the immediate downside bias for a move back to 131.97, potentially 132.34, but with the ‘neckline’ to the top at 132.66/68 ideally capping further strength.”
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