EUR / JPY rose sharply again on Tuesday, however, only a break above 125.11 would end corrective risks for the central uptrend to resume, in the opinion of the Credit Suisse analyst team.
Key statements:
“EUR / JPY rallied further on Tuesday after essentially staying above the potential uptrend of May earlier in the week. We remain biased higher here with a slight bias to the downside as long as it remains below 125.11 “.
“An eventual break below the October low at 123.03 / 01 would reaffirm the correction and warn of a retest at the end-September low of 122.38., then we are more likely to think about the key retracement supports seen at 122.27 / 23, including the 38.2% retracement of the entire rally from the May low, which we are still looking to be a solid bottom. However, a break would raise the possibility of a deeper pullback to the neckline of the June / July base at 121.35, with a margin to go to the 200-day average at 121.10 “.
“Short-term resistance is seen at the 55-day average at 124.73 and then at the high of the recent range at 125.11. We expect to stay below here for core downside risk to continue. Above, it would indicate that the core uptrend is resuming for a move to 126.46 below. “
Credits: Forex Street
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