USD/JPY weakness remains seen as healthy and temporary. Therefore, economists at Credit Suisse maintain their core bullish outlook and expect the pair to hit the 123.00 level in the long run.
Near-term support moves to 113.26
“USD/JPY extends its pullback following its move to price and retracement resistance at 114.73/92 but with a major base in place above 112.40 we maintain our view this is a temporary and healthy setback only.”
“We look for a move above 114.92 in due course for a test of the long-term downtrend from April 1990, currently at 117.07. It’s worth reiterating though the ‘measured base objective’ is significantly above here at 122.90/123.00, however this is very much a longer term objective.”
“Near-term support moves to 113.26, then 113.08/00, with 112.23/05 ideally holding any deeper setback.”
