Credit Suisse discusses EUR/JPY technical outlook and maintains a bearish bias over the coming weeks.
"EURJPY has staged a sharp recovery and is back above resistance at 115.53 – the 78.6% retracement of the 2016/2018 bull trend – but even though we see scope for this to extend further yet, strength stays seen as corrective for now with a large bear “triangle” pattern still seen in place. We see scope for a test of price resistance at 116.61 but we look for this to then try and cap for an attempt to turn lower again," CS notes.
"Support is seen at 115.84/82 initially, below which can ease the immediate upside bias, but with a move below 115.08/03 needed to suggest the downtrend has resumed for a fall back to 114.38, ahead of 113.71, ahead of 112.60 and then the 112.08 low of September 2016, which we would expect to hold at first.
Above 116.61 can see the recovery extend further with resistance seen next at 116.92/117.02 and then more importantly at 117.77/83, which we look to cap," CS adds.