USD/JPY falls below 107.00, next support seen at 106.65 – Credit Suisse

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USD/JPY slides below the 107.00 level as the 107.42 resistance remains intact. The pair faces next support at 106.65, as Credit Suisse’s analysts note.

Key quotes

“USD/JPY remains capped at its downtrend from early June, 13 and 55-day averages and price resistance at 107.32/42.”

“Whilst low conviction the immediate risk is seen staying marginally lower whilst below here with support seen at 107.15/11 initially and with a move below 106.65 needed to clear the way for a retest of the lows from May and June and ‘neckline’ support at 106.12/105.98. Beneath here would see the completion of an important top to mark a more significant and concerted turn lower with support then seen next at 105.20/14 – the 61.8% retracement of the March rally.” 

“Above 107.42 would see the downtrend break to see the trend shift neutral again. Only back above 107.80 would reassert an upward bias for a move back to the early July high at 108.17.”

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