EUR/JPY: Rallying strongly with the 200-day average at 119.26 to cap – Credit Suisse

EUR/JPY continues to rally strongly after establishing a base and Credit Suisse’s bias stays higher with next resistance at the April highs at 119.01/04 and the 200-day average at 119.26. Commerzbank's Karen Jones also has the 200-day ma in sight.

Key quotes

“We see resistance at the April highs at 119.01/04 and with the falling 200-day average not far above at 119.26, we would expect this to cap at first. A break in due course though can expose the medium-term, downtrend from September 2018, today at 120.00.” 

“Near-term support is seen higher at 118.61/51, then 118.14, with yesterday’s low and moving average cluster at 117.70/53 now ideally holding further weakness.”