FXStreet reports that analysts at Credit Suisse note that EUR/JPY maintains a large base and is expected to see a clear break above its long-term downtrend from 2018 around 126.54 with next resistance at 127.08.

“Consolidation extends at the long-term downtrend from 2018 around 126.54, but with the market still well supported in our view. Indeed, with a large ‘head & shoulders’ base in place above the October and November highs at 124.99/125.18 – we remain of the view a more important trend higher is underway.” 

“Above 126.67/69 should reassert the uptrend with resistance then seen next at the 127.08 September high, above which should add further momentum to the uptrend with resistance then seen next at 127.52 and with the ‘measured base objective’ seen higher at 128.70.”