USD/JPY is taking a healthy breather. Economists at Credit Suisse view this as a healthy pause ahead of a test of the long-term downtrend from April 1990 at 116.83.
Support at 114.96 ideally now holds
“With 10yr US Bond yields now seen completing a major base as looked for we expect this to further reinforce the existing base in USD/JPY.”
“We look for a break above 116.35 for a test of the long-term downtrend from April 1990, now seen at 116.83. Whilst we would expect to see a fresh phase of consolidation to emerge here, we look for a break higher post this for a challenge on the 118.61/66 highs of late 2016 and 2017.”
“Big picture, we look for an eventual rise to 1222.90/123.00.”
“Near-term support moves to 115.62, then 115.68/62 which we look to ideally hold. A close below 114.96 though remains needed to ease the immediate upside bias.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD tests the upper boundary around the level of 1.0800
EUR/USD has recovered its recent gains registered in the previous session, trading around 1.0780 during the Asian session on Tuesday. From a technical perspective, analysis indicates a sideways trend for the pair as it continues to lie within the symmetrical triangle.
GBP/USD clings to near 1.2550 ahead of Unemployment Rate
GBP/USD hovers around 1.2560 during the Asian session on Tuesday following the improved risk appetite. The Pound Sterling received support from higher-than-anticipated UK Gross Domestic Product figures released on Friday.
Gold price gains ground ahead of US PPI data, Fed’s Powell speech
Gold price rebounds despite the consolidation of the US Dollar on Tuesday. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.
Top meme coins post gains following increased social activity amid GameStop pump
Meme coins in the crypto market saw impressive gains on Monday following a recent surge in GameStop stock. The increased attention surrounding these tokens signifies a potential resumption of the meme coin frenzy of March.
Entering a crucial run of data for financial markets
We are entering a crucial period for financial markets and forecasters as Americans' near-term inflation expectations rise again. Upcoming reports on the CPI and PPI for April, along with new data on retail sales and industrial production, will provide valuable insights.