USD/JPY is set to hold support at 110.10/00 for an eventual sustained break above 110.70. Next is the long-term resistance starting at 111.66, economists at Credit Suisse report.
See – USD/JPY to simmer a push towards the 111.70/112.20 zone – Westpac
Scope for a near-term pullback
“With 10yr US bond yields having completed a base and expected to rise further, we maintain our view that weakness in USD/JPY is temporary and we look for the cross to continue to move in line with yields.”
“Key support is seen starting at 110.23 and stretching down to 110.10/00 – the 13-day exponential average, 55-day average and the 38.2% retracement of the August rally.”
“We look for the 110.10/00 region to hold for an eventual sustained move above 110.70 to open the door to a challenge on long-term resistance starting at the 111.66 July YTD high and stretching up to the 112.40 high of 2019.”
“Below 110.00 can see a deeper pullback to 109.70, potentially 109.41/24, but with buyers expected here.”