USD/JPY edged lower on Monday, but economists at Credit Suisse look for a closing break above key resistance at 110.97, which would increase the risk of a major base. First support is seen at 110.43, then 110.03.
“USD/JPY remains well supported above key support from the 13-day exponential average and uptrend from January at 110.45/03 and we continue to look for a sustained break higher. This should then expose long-term and more important resistance, starting at 111.93 and stretching up to the 112.40 high of 2019.”
“Whilst we would expect a cap in the 111.93/112.40 zone at first, we are biased to a break higher in due course, which would then see a much more significant base established to mark a more important turn higher and a move to 114.00 next.”
“Support moves to the aforementioned 13-day exponential average at 110.45/43, which we look to hold. Below can see a move back to the uptrend at 110.03, but only below 109.72 would warn of a top for a fall back to 109.31/19.”
