EUR/JPY to test the 134.14 high of 2021, with trend resistance seen at 134.41 – Credit Suisse

EUR/JPY has surged above its 10-month downtrend. Analysts at Credit Suisse look for a test of the 2021 high at 134.14.

Support is seen at 132.33 

“We look for a test of the 2021 high at 134.14. Whilst a fresh rejection from here should be allowed for, with the JPY expected to stay weak in outright terms, we are biased to a sustained break higher in due course. This should then clear the way for a move to trend resistance at 134.41.” 

“Through 134.41 is needed to curtail thoughts of a broader mean-reverting range with resistance seen next at 135.85, potentially the 137.50 high of 2018.” 

“Support is seen at 132.95 initially, with 132.33 needing to hold to keep the immediate risk higher. Below can see a pullback to 131.99/92, potentially 131.53, but with buyers expected here.”