EUR/JPY is holding its key 200-day moving average (DMA) now at 129.56. The pair is set to look for an important floor here and a move back to retest key resistance at 130.75/131.10, the Credit Suisse analyst team reports.

“Our bias remains to look for an important floor at the key 129.56 200-DMA and for a fresh move higher again to emerge.Immediate resistance is seen at 130.28, above which is needed to add weight to our view to clear the way for a move back to retest key resistance from the 50% retracement of the June/August fall, early September high and mid-July high and downtrend from early June at 130.75/131.10.”

“Above 130.75/131.10 would now see a ‘head and shoulders’ base established to mark a more important turn higher.”

“Support moves to 129.84/80 initially. A close below 129.56 though would instead warn of a more important turn lower with support seen next at 129.15, removal of which can clear the way for a move back to the 127.93/88 August lows.”

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