EUR/JPY has surged above its downtrend from last October but more importantly its January highs. Analysts at Credit Suisse look for strength to extend to the top of the eight-month downtrend channel from June last year at 132.92/99.

Support moves to 130.50

“Resistance is seen next at the 78.6% retracement of the Q4 2021 fall at 132.18. Whilst this should be allowed to cap at first, a break in due course should see strength extend to 132.58 next ahead of what we expect to be tougher resistance at the top of the eight-month downtrend channel from June last year at 132.92/99. We expect this to then remain a tougher barrier.” 

“Support is seen a t 131.44 initially, then 131.21 ahead of the back of the broken uptrend at 130.92. An immediate upside bias though should be maintained whilst above the overnight low and 200-day average at 130.50.”