Dollar/yen is on the rise amid the upbeat market mood. How high can it go?
Here is their view, courtesy of eFXdata:
Credit Suisse discusses USD/JPY technical outlook and adopts a bullish bias in the near-term.
“USDJPY has broken above the key 109.71/73 resistance zone to suggest further strength is likely USDJPY has followed up its break above the key downtrend from late 2018 with a break above the key November/December highs at 109.71/73. This reasserts the prior up move and should see further strength in the coming days, with the next resistance seen at 110.35/37 initially, then 110.68/71, the 78.6% retracement of the 2019 fall, 61.8% retracement of the entire 2018/19 fall and a corrective price high.
We believe this zone is likely to prove a tough barrier once reached, particularly as short term momentum remains very poor despite the recent bullish signals. Above here, another potential downtrend is currently seen at 111.15, before a much more important long term downtrend at 111.61, which is likely to prove an incredibly tough barrier,” CS notes.
“The market should now ideally hold above its 109.73/69 breakout point to keep the risks directly higher,” CS adds.
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