From highlighted resistance at 110.72/82, the USD/JPY has completed a bearish “reversal day.” According to the Credit Suisse analysis team, a close below the 55-day average at 109.82 would signal a longer corrective phase.
“USDJPY has completed a bearish “reversal day” by rejecting major resistance from the rear of the broken uptrend from January, as well as price and retracement resistance at 110.72/82. As a result, the risk has quickly turned lower in preparation for a retest of critical support at the 55-day average of 109.82.”
“A closure below the 55-day average at 109.82 can lead to a longer corrective phase lower, with support next at the current low at 109.53, below which support should be found around 109.23/07 – the June lows and 61.8 percent retracement of the April/July rise.”
“Initial resistance is at 110.20, then 110.54. Above 110.82 is required to reestablish an upward tilt for strength back to 111.20, then the current cycle highs at 111.66/72, with long-term resistance piled at 111.93 through 112.40.”/n
