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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.”