EUR/JPY to extend its rise toward the downtrend from May 2021 at 132.79 – Credit Suisse

EUR/JPY has surged above its 200-day moving average (DMA) at 130.04. Analysts at Credit Suisse look for strength to extend to the 10-month downtrend at 132.79.

Support is seen at 131.19

“We look for a fresh challenge on the 10-month downtrend, now seen at 132.79. Our bias would be for this to then cap again and for a retracement lower to emerge. A close above 132.79 though and then importantly the 133.16 YTD high would mark a more notable break higher with resistance seen next at 133.49 ahead of the 2021 high at 134.14.” 

“Support is seen at 131.57 initially, with 131.19 ideally holding to keep the immediate risk higher. Below can see a pullback to 130.72, potentially the 200 and 55-DMA at 130.04/129.83, but with better buyers expected here.”