EUR/JPY continues to fall aggressively for a retest of the December lows at 127.51/38. Economists at Credit Suisse expect the pair to break below here and test of channel support at 127.04.

Resistance at 129.24 to cap

“We continue to look for a move below the December lows at 127.51/38 in due course to retest the medium-term nine-month channel bottom, today seen at 127.04. A fresh hold here will be looked for, but with the broader risk seen lower and an eventual break can clear the way for a test of support seen next at the 38.2% retracement of the 2020/2021 bull trend at 126.59.”

“Resistance is seen at 128.38 initially, with 129.19/24 ideally capping to keep the immediate risk lower. Above can see a recovery back to 129.79, with the 200-day average and price resistance at 130.31 ideally now capping any further strength.”