USD/JPY: Support at 109.22/17 to hold with resistance seen at 109.64 – Credit Suisse

USD/JPY weakness has been contained by key 55-day average and uptrend support at 109.22/17 – economists at Credit Suisse look for an attempt to establish a floor here.

Key uptrend and 55-day average support at 109.22/17 is holding

“USD/JPY weakness has extended further following its bearish ‘reversal day’ for a move below price support and its 13-day exponential average at 109.36/33, but importantly holding its 55-day average and uptrend from early January at 109.22/17 and we continue to look for an attempt to hold here.”

“A break above near-term resistance at 109.64 remains needed to ease the immediate pressure off this support for strength back to 109.96 initially ahead of 110.12 and then the 110.29/35 ‘reversal day’ highs. Beyond this latter area is needed to reassert the bull trend for 110.77/97.” 

“Below 109.22/17 though would see a top established to warn of a more significant reversal lower with support then seen next at the late May highs at 108.57.”