USD/JPY continues its strong push higher as expected after holding key support from the 13-day exponential average, uptrend from early January and recent low at 109.83/71. Analysts at Credit Suisse look for a move above the 110.97 YTD high for a move to long-term resistance, starting at 111.94.
Support at 110.22/18 now ideally holds
“We continue to look for a sustained move above the 110.97 high for the year to expose long -term and more important resistance, starting at 111.94 and stretching up to the 112.40 high of 2019.”
“Whilst we would expect a cap in the 112.40 zone at first, we are biased to a break higher in due course, which would then see a much more significant base established to mark a more important turn higher and a move to 114.00 next.”
“Support moves to 110.59 initially then 110.39, with the 13-day exponential average at 110.22/18 continuing to now ideally hold. Only below 109.71 though would warn of a deeper setback to retest the June lows and 55-day average at 109.29/19.”