Home Forex Analysis And Forecasts USD/JPY: Buy Nearest Dip; EUR/USD: Sell Against Neckline - Credit Suisse

USD/JPY: Buy Nearest Dip; EUR/USD: Sell Against Neckline – Credit Suisse

USD/JPY manages to sustains its early strength around 124.16, the 2007 peak, notes Credit Suisse.

"While 123.48/33 holds, the immediate risk should stay higher for a clear break in due course to target 125.00, ahead of 125.70/90 – the June and December 2002 highs. Whilst we expect this to cap at first, an eventual break higher should target trend channel resistance at 127.22, followed by 128.50, potentially 132.20," CS projects.

"Below 123.33 can see a dip back to 122.76, below which can see a test of the point-of-breakout at 122.23/17," CS adds.

In line with this view, CS runs a limit order to buy USD/JPY dips into 123.44, targeting a move to 127.20.

EURUSD

Turning to EUR/USD, CS stays bearish and short as the “neckline” to the recent breakdown and the 38.2% retracement barrier at 1.1062/67 is capping to keep the trend still lower.

"Support moves to 1.0868/65 initially, below which can see a move back to 1.0818/15, with a break here needed to see further weakness to 78.6% retracement support at 1.0674 next, ahead of testing the low end of the former range at 1.0660/28," CS projects.

"We would expect an initial hold here. Direct extension through can target 1.0521 next, ahead of the lows back in March at 1.0458," CS adds.

In line with this view, CS maintains a short EUR/USD position from 1.0955, with a stop at 1.1067, and a target at 1.0625.

EURUSD

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