USD/JPY continues to hold support at 109.59. Economists at Credit Suisse look for a fresh swing higher within the broader range.
“Resistance is seen at 110.13/16 initially, above which can see a move back to 110.30, then a retest of the high of last week at 110.45. Only above the 110.81 August high though would be seen to open up a move back to test the important resistance zone, starting at 111.66 and stretching up to 112.23/40. Above here at any stage would mark a large medium-term base.
“Near-term support moves to 109.90. A break below 109.59 would keep the risk lower within the broader range with support next at 109.42, then what we look to remain the lower end of the range at 109.22/12.”