The USD/JPY pair has been capped at a cluster of resistances at 104.33/77 and only above here would see a bullish “wedge” reversal established, analysts at Credit Suisse apprise.
“USD/JPY strength has been capped for now as expected at a cluster of major resistances, starting at its downtrend from last March at 104.33 and stretching up to the December high at 104.77. However, we remain of the view we may be witnessing the construction of a bullish falling ‘wedge’ reversal.”
“Only above 104.77 would mark a more important reversal higher to open up a move to 105.68 next, then likely the 200-day average at 105.88, which we would expect to cap at first.”
“Support moves to 103.49/39 initially, then 103.28. Below this latter level would now lessen thoughts of a “wedge” and instead, warn of a direct resumption of the downtrend back to the lows and trend support from last July at 102.59/48.”
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.