FXStreet reports that the Credit Suisse analyst team apprises that an important medium-term base is now seen in place with next resistance looming at 125.13/23.

“EUR/JPY has established a medium-term base above major resistance at 122.52/123.31– the high for the year from January, 38.2% retracement of the entire 2018/2020 bear trend and July 2019 high - to mark a medium-term change of trend higher.”

“A pullback is looked for, but with weakness seen as corrective with resistance above 124.44 seen next at 124.70, then 125.13/23 – the back of the broken uptrend from 2012. We would look for this to cap at first, but with a break looked for in due course with resistance next at the 50% retracement of the fall from 2018 at 125.94. Big picture though, the ‘measured base objective’ is seen set significantly higher at 133.75.” 

“Support is seen at 123.29 initially, below which can see a retracement lower, but with good support seen starting at 122.78 and stretching down to the ‘neckline’ to the base at 122.52.”