EUR/JPY: Scope for a deeper recovery to the 55-DMA at 129.81/85 – Credit Suisse
|EUR/JPY has surged dramatically higher after holding support from the 50% retracement of the entire 2020/2021 uptrend at 124.26. Economists at Credit Suisse expect the pair to extend its strong recovery to the 61.8% retracement of the February/March collapse and 55-day moving average (DMA) at 129.81/85.
Initial support seen at 126.85/74
“We look for the recovery to extend further yet with resistance seen next at the 50% retracement of the February/March collapse at 128.78. Whilst we look for this to cap at first, above in due course should see what we look to be tougher resistance at the 61.8% retracement and 55-DMA at 129.81/85. With the 200-DMA not far above at 130.11, we look for a better cap here.
“Support is seen at 127.38 initially, with 126.85/74 ideally holding to keep the immediate risk higher. Below 126.00 though is needed to see the risk quickly turn lower again for a retest of 124.40/26.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.