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The USD/JPY recovery is starting to lose momentum as expected and analysts at Credit Suisse continue to look for resistance at 105.82/92 to ideally cap further strength and for the risk to turn lower again for a fall back to 104.00. 

Key quotes

“USD/JPY strength is showing signs of stalling as expected ahead of resistance at 105.82/92 and with the 55-day average and downtrend from early June now also here we continue to look for this to cap and for the downtrend to ideally resume.”

“Support is seen at 105.24/24 initially, below which would now see a minor top complete to add weight to this view with support seen next at 105.09, then 104.88/83. Beneath this latter area should confirm the recovery may already be over with support then seen next at 104.40/37, then the 104.00 recent low.”

“Immediate resistance is seen at 105.46, then 105.70. A close above 105.98 though would warn of a more concerted move higher with resistance seen next at 106.30 and then 106.51/56.”