EUR/JPY holds a bearish “reversal day” and now also a near-term top and analysts at Credit Suisse look for further weakness to the medium-term uptrend at 128.37/30.
“With a bearish RSI momentum divergence, we look for this to open the door to a corrective phase lower. We see support at 128.78/74 initially, then the 38.2% retracement of the rally from January at 128.54.”
“Whilst we would look for the 128.54 mark to hold at first, below in due course can see the ‘measured top objective’ and medium-term uptrend at 128.37/30. Whilst a hold here will be looked for a break can raise the prospect of a more significant breakdown, with support seen next at the 55-day average at 127.68/64.”
“Resistance is seen at 129.50 initially, then 129.69, with a break above 130.00 needed to see the top neutralized for a move back to 130.68/71.”