USD/JPY to find a floor at the 109.71 55-DMA – Credit Suisse

USD/JPY weakness has extended to the 55-day average and further price support at 109.72/60. “Our bias remains to look for a floor here,” economists at Credit Suisse say.

Resistance seen at 110.40/42

“USD/JPY has seen a further sharp sell-off following the completion of a top and break of its uptrend from January for a fall to our corrective objective of the 55-day average and late June low at 109.72/60. Our bias remains for a floor to be found here for a resumption of the broader uptrend.” 

“Resistance is seen at 110.38/42 initially, above which can see a move back to 110.82, but with a break above here needed to add weight to our basing story to reassert an upward bias again for strength back to 111.20 initially, then last Friday’s high at 111.66/72.” 

“A closing break below 109.60 though would suggest a more serious downturn, with next support then seen at 109.23/19.”