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USD/JPY has finally removed key resistance from its 55-day average and downtrend from early June at 105.80 and analysts at Credit Suisse look for further strength within the broader range to potentially test the August highs at 106.95/107.06.

Key quotes

“USD/JPY has finally cleared key resistance from the 55-day average, downtrend from early June and price resistance centred on 105.80 and this should allow a more concerted move higher to emerge.”

“Resistance is seen next at 106.22/29, ahead of the top of the downtrend channel from late March at 106.72, with more important price resistance seen at the August highs at 106.95/107.06 where we would then look for a fresh cap. Beyond 107.06 though would mark the completion of a more important base and change of trend higher.” 

“Support moves higher to 105.85/80 initially, with 105.59/47 now ideally holding to keep the immediate risk higher. Below can see a retest of the recent spike low at 104.93/83.”