USD/JPY sets a near-term base above 107.64, immediate resistance seen at 107.88 – Credit Suisse

The USD/JPY has surpassed the 55-day average and price resistance at 107.62/64 and now is set to face initial resistance at 107.88 before the 200-day average at 108.37/43, the Credit Suisse analyst team briefs.

Key quotes

“The recovery in USD/JPY from just ahead of key support from the 105.98 May low has extended above the 55-day average and price resistance at 107.62/64. This sees a near-term change in our outlook as this sets a small base to turn the risks higher in the broader range.”

“Immediate resistance is seen at 107.88/96, above which we then see the 200-day average at 108.37/43. Whilst we would look for this latter area to cap at first, a break in due course should see resistance next at the ‘measured base objective’ at 108.84, with the top of the downtrend channel from late March seen at 109.25 today.”

“Support from the ‘neckline’ to the base at 107.46/35 ideally holds to keep the immediate risk higher. Below 106.80/79 though is needed to see the base neutralized for a retest of 106.08/105.98.”