USD/JPY: Support at 109.81/71 to hold for a test of the 110.97 March high – Credit Suisse

USD/JPY has held support at 109.81/71 as expected. Subsequently, analysts at Credit Suisse stay biased higher for a test the YTD high at 110.97.

Initial resistance seen at 110.49/54

“Above 110.49/54 should add weight to our view for the risk to turn higher again, with a move back to 110.77/83, then a test of the 110.97 high for the year. Above here in due course can expose long-term and more important resistance, starting at 111.94 and stretching up to the 112.40 high of 2019.” 

Through the 112.40 high of 2019, USD/JPY would see a much more significant base established to mark a more important turn higher and a move to 114.00 next.” 

“Support moves to the 13-day ema at 110.04 initially, which we now look to try and hold. Below 109.71 though would warn of a deeper setback to retest the June lows and 55-day average at 109.29/19, but with a fresh floor expected here.”