The 55-day average and further price support for the USD/JPY are at 109.72/60. Credit Suisse economists say, “Our tendency remains to look for a floor here.”
“Following the conclusion of a top and break of its uptrend from January, the USD/JPY has dropped to our corrective objective of the 55-day average and late June low at 109.72/60. Our expectation is that a floor will be found here, allowing the larger uptrend to resume.”
“Initially, resistance is expected at 110.38/42, above which a move back to 110.82 is possible, but a break above here is required to reestablish an upward bias for strength back to 111.20 initially, then last Friday’s high at 111.66/72.”
“However, a close below 109.60 would indicate a more dramatic drop, with next support around 109.23/19.”/n
