USD/JPY: Short-term top to keep risks lower for a move to support at 104.00/103.87 – Credit Suisse

USD/JPY maintains a short-term top and analysts at Credit Suisse look for a break of the potential uptrend support at 104.48/34 next. The pair flirts with session lows, around 104.55 region, as of writing.

Key quotes

“USD/JPY maintains a short-term top after breaking below support at the key October lows at 104.93/83 earlier in the week, which turned the short-term risks lower again.”

“The market is stalling above potential trend support from March, today at 104.48/34, however, the ‘measured objective’ to the newly completed top suggests we could easily see a move to the 104.00 low of September, with a potential trend support just below at 103.87.”

“It remains surprising to see the breakdown over the past week between USD/JPY and US Yields as the latter push sharply higher. Should this correlation reassert itself and drag USD/JPY back higher, the key short-term resistances to watch remain at 104.93/105.03, which needs to hold to keep the risks lower.”