EUR/JPY has surged above medium-term resistance at 137.50/54 to mark a further significant break higher. Next resistance is seen at 141.06/18, analysts at Credit Suisse report.

Support at 138.47/39 set to hold to keep the immediate risk higher

“EUR/JPY maintains the strong tone following its break above key resistance from the 2018 and recent highs at 137.50/54, which marked a significant break higher to open up further medium-term upside.” 

“We stay biased higher, with resistance seen next at 140.03/09, ahead of the June 2015 high and 78.6% retracement of the 2014/2016 fall at 141.06/17. We would look for this to then cap at first for a phase of consolidation. Big picture though, we would look for this to be followed by a break higher with resistance then seen next at 141.74, then 142.42.” 

“Support is seen at 139.28 initially, then 138.91, with 138.47/39 now ideally holding to keep the immediate risk higher. Below can see a setback to support next at 137.54/50, potentially 136.95, but with buyers expected to show here.”