USD/JPY has broken support from the 23.6% retracement of the Q1 rally at 108.99, which is seen exposing more important support at 108.55/33. Failure to hold this latter area would see a top complete, according to economists at Credit Suisse.
Key support remains seen at 108.55/33, with resistance seen at 109.57
“USD/JPY weakness has extended further for a break of 108.99. This is seen exposing what we see as more important support at 108.55/33, the key lows from March and ‘neckline’ support. Whilst we would look for an attempt to hold here a break would instead see a top complete to mark a more important turn lower. We would then see support next at the 38.2% retracement of the Q1 rally at 107.82/77, with the 55-day average currently at 107.54, which we would look to hold at first.”
“Resistance moves to 109.33 initially, then 109.57, with the immediate risk seen lower whilst below here. Above 109.95/97 though remains needed to see a fresh low established for strength back to 110.15 initially, then 110.57/75.”