EUR/JPY to extend its slide towards he December lows at 127.51/38 – Credit Suisse

EUR/JPY has collapsed lower for a break of its uptrend from May 2020. A break below 128.26 can see weakness extend to the December lows at 127.51/38, economists at Credit Suisse report.

Initial resistance located at 129.00 

“A close below the late January lows at 128.34/26 can see the immediate risk stay lower for a move back to the December lows at 127.51/38.”

“Although a fresh hold here should be allowed for, we would see scope for a move below the December lows at 127.51/38 in due course to retest the medium-term channel bottom at 127.06, with the 38.2% retracement of the 2020/2021 bull trend at 126.59.” 

“Resistance is seen at 129.00 initially, with 129.35 now ideally capping to keep the immediate risk lower. Above can see strength extend back to 129.54, potentially 130.01/11.”