EUR/JPY: A sharp rebound is underway, but strength stays seen as corrective – Credit Suisse

EUR/JPY has staged a sharp recovery and is back above resistance at 115.53 but even though analysts at Credit Suisse see scope for this to extend further yet, strength stays seen as corrective for now.

Key quotes

“We see scope for a test of price resistance at 116.57/61 but we look for this to then try and cap for an attempt to turn lower again.”

“Support is seen at 115.84/82 initially, below which can ease the immediate upside bias, but with a move below 115.08/03 needed to suggest the downtrend has resumed for a fall back to 114.38.”

“Above 116.61 can see the recovery extend further with resistance seen next at 116.92/117.02 and then more importantly at 117.77/83, which we look to cap.”