EUR/JPY set to challenge a cluster of key supports at 129.59/36 – Credit Suisse

EUR/JPY continues its aggressive fall. Analysts at Credit Suisse look for a break of the 130.05 June low for a test of more important support at 129.59/36.

EUR/JPY to move back to 130.05 and eventually more important support at 129.59/36

“EUR/JPY continues to fall sharply, turning the spotlight on the June low at 130.05/00. We continue to see the risk for a break below here for a move to test what we see as more important support at 129.59/36 – the April lows and 38.2% retracement of the October/June rally. 

“Our bias would be for a fresh and important floor at the 129.59/36 region. Should weakness directly extend though this would mark a larger top and more important change of trend lower with support then seen next at the late March low and 200-day average at 128.29/18.” 

“Resistance is seen at 130.55 initially, above which can see a move back to 131.04, with this now ideally capping. Above can ease the immediate downside pressure for a deeper recovery to 131.27, potentially 131.87/88.”