USD/JPY: Break above 113.70/96 to clear the way for a move back to 115.42/52 highs – Credit Suisse

USD/JPY continues to hold the key 55-day moving average (DMA) now at 113.10 on a closing basis. Economists at Credit Suisse still look for a floor here with a break above 113.70/96 needed to clear the way for a move back to the 115.42/52 highs.

Key 55-DMA support at 113.10 continues to hold

“Whilst we continue to look for an attempt to find a floor at the 113.10 55-day average, above 113.70/96 remains needed to reassert an upward bias with resistance then seen next at 114.78 and eventually back at 115.42/52.” 

“Big picture with a major base in place, we continue to look for a move above 115.42/52 in due course for a test of the long-term downtrend from April 1990 at 116.96.” 

“A close below 113.10 though would warn of a more protracted, but still corrective fall with support seen next at the recent low and the 38.2% retracement of the rally from April at 112.53/45, with more important support seen starting at the ‘neckline’ to the major base at 111.84 ahead of the July high at 111.66.”