EUR/JPY continues a large base and is expected to see a clear damage above its long-term downtrend from 2018 around 126.54 with next resistance at 127.08, analysts at Credit Suisse report.
“Consolidation extends at the long-term downtrend from 2018 round 126.54, but with the market still properly supported in our view. Indeed, with a large ‘head & shoulders’ base in place above the October and November highs at 124.99/125.18 – we stay of the view a more important fashion higher is underway.”
“Above 126.67/69 should reassert the uptrend with resistance then considered next at the 127.08 September high, above which should add in addition momentum to the uptrend with resistance then seen next at 127.52 and with the ‘measured base objective’ considered higher at 128.70.”
“Support moves to 126.05 initially, then 125.93, with a wreck below 125.78 needed to ease the on the spot upside bias for a deeper setback to the ‘neckline’ to the base at 125.19/08, but with this ideally holding any in addition weakness.”