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The USD/JPY pair has been capped at a cluster of resistances at 104.33/77 and only above here would see a bullish “wedge” reversal established, analysts at Credit Suisse apprise.

See – USD/JPY falters at the initial 104.34 resistance level – Commerzbank

Key quotes

“USD/JPY strength has been capped for now as expected at a cluster of major resistances, starting at its downtrend from last March at 104.33 and stretching up to the December high at 104.77. However, we remain of the view we may be witnessing the construction of a bullish falling ‘wedge’ reversal.” 

“Only above 104.77 would mark a more important reversal higher to open up a move to 105.68 next, then likely the 200-day average at 105.88, which we would expect to cap at first.” 

“Support moves to 103.49/39 initially, then 103.28. Below this latter level would now lessen thoughts of a “wedge” and instead, warn of a direct resumption of the downtrend back to the lows and trend support from last July at 102.59/48.”