USD/JPY: Potential to skyrocket as high as 117.20 – Credit Suisse

USD/JPY continues to surge higher. Economists at Credit Suisse stay biased higher with resistance seen at 111.66, then 112.23/40. An eventual break above here would introduce scope for 117.20, the long-term downtrend from April 1990.

Support moves higher to 110.52

“With US yields having completed near-term bases and expected to rise further, we continue to look for a test on long-term resistance, starting at the 111.66 June YTD high and stretching up to the 2019 and 2020 highs at 112.40 and 112.23 respectively. 

“Whilst the 112.23/40 resistance should be respected, an eventual break would see an important and large base complete to signal a more sustained change of trend higher. We would expect this to provide the platform for a move to the 2018 highs at 114.25/55 initially, with scope for 117.20 in due course, the long-term downtrend from April 1990.”

“Support moves to 110.93 initially, then 110.78, with 110.52 ideally holding to keep the immediate risk higher. Below can see a pullback towards 110.16/08, but with fresh buyers expected here.”