EUR/JPY to find a floor at the 119.55/41 support, resistance awaits at 120.53/63 – Credit Suisse

EUR/JPY weakness has extended to support from the 200-day average and 50% retracement of the May/June rally at 119.55 but analysts at Credit Suisse expect this level to hold with resistance seen at 120.53/63.

Key quotes 

“EUR/JPY has seen further weakness as expected following its break below 120.60 and daily MACD cross lower to test and hold for now as expected 119.55 – the 200-day average and 50% retracement of the rally from May. We look for an attempt to hold here with resistance seen at 120.04 initially, then 120.25, with a break above 120.53/63 needed to mark a minor base to ease the immediate downside bias with resistance then seen next at 121.24 and then more importantly at 122.13.” 

“A close below 119.41 can see weakness directly extend to expose the 55-day average and 61.8% retracement at 118.22/14, potentially the top of the April/May base at 117.78, but with this expected to prove better support.”