USD/JPY: Sustained break above 109.64 to confirm a base for a move back to 110.77/97 – Credit Suisse

USD/JPY continues to hold key 55-day average and uptrend support at 109.29/19. Economists at Credit Suisse to look for a floor here with a sustained move above 109.64 needed to confirm a near-term base for a move back to 110.77/97, in line with an expected rise in yields.

See – US CPI Preview: Forecasts from eight major banks for critical May inflation

USD/JPY to find floor above uptrend and 55-day average support at 109.29/19

“USD/JPY continues to defend key support from its 55-day average and uptrend from early January at 109.29/19 and we continue to look for a floor to be found here in line with 10yr US Bond yields also finding a floor at its key resistance at 1.50/475%.” 

“A sustained break above near-term resistance at 109.64 remains needed to confirm a near-term base is in place 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 109.29/19 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.”


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