EURJPY will remains under heavy pressure in the few weeks ahead, according to David Sneddon and his team at Credit Suisse in London.
Sneddon says that after completing a minor top below 135.85, EURJPY has since fallen back below the “point of breakout” and the 21-day moving average at 134.66/46. This, he says, throws a large question mark over the large bullish continuation pattern (see Chart). Sneddon says that attention now turns towards important support from the uptrend, overlapping retracement levels and 55-day moving average line at 133.31/04, which needs to hold to avoid a more important change of trend lower.
Conversely, Sneddon thinks a move above 135.49 is needed in order to restore the bullish picture and to re-target the recent high at 136.64.