USD/JPY to surge towards the 114.55 mark on a break above 112.40 – Credit Suisse

USD/JPY is still threatening a major long-term base despite the recent pullback. However, this would only be confirmed above 112.40. If confirmed, this would open up a move to the next key resistance zone at 114.55, the Credit Suisse analyst team reports.

USD/JPY continues to build a potential base

“USD/JPY weakness has been contained as looked for by its 55-day average and price support at 109.75/60 and we look for a retest of major resistance at 111.66/112.40 – the YTD and key highs from 2019 and 2019 and associated ‘neckline’.”

“Above 112.40, which remains our eventual bias, would mark a major base to clear the way for a more sustained move higher with resistance then seen at 114.55 initially.”