Credit Suisse discusses EUR/JPY technical outlook and sees a scope for a rally back towards 125 after consolidation in the near-term.
"Post the current admittedly sharp setback we thus look for the bull trend to resume with resistance seen next at 125.13/23 – the back of the broken uptrend from 2012 – then the 50% retracement of the 2018/2020 bull trend at 125.94. Whilst we think this can cap at first, we look for a break in due course with resistance next at 127.52, then the 61.8% retracement at 128.67. Big picture though, the “measured base objective” is seen set significantly higher at 133.75," CS notes.
"Weakness should now ideally not extend back below 120.60," CS adds.