EUR / JPY maintains a bearish “reversal day” and now also a short-term top, say Credit Suisse analysts. They expect further weakness, leading the euro to the medium-term uptrend line at 128.37 / 30.
Key statements:
“With a bearish divergence from the RSI timing, we look for this to open the door to a bearish corrective phase. We see support at 128.78 / 74 initially, then the 38.2% retracement of the January rally at 128.54 “.
“While we would look to hold the 128.54 mark at first, in due course you can see the ‘maximum measured target’ and the medium-term uptrend at 128.37 / 30 below. While containment will be sought here, a breakout may heighten the prospect of a more significant collapse, and support is seen next at the 55-day average at 127.68 / 64 ”.
“Resistance is seen initially at 129.50 initially, then 129.69, with a break above 130.00 needed to see the top neutralized for a return to 130.68 / 71.”
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