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USD/JPY maintains its bearish continuation pattern and is now testing below the July low at 104.19. Economists at Credit Suisse continue to look for a clear and closing break below the aforementioned level, with the next support seen at 103.43.

More: USD/JPY to see a small rebound from the 104.20 July low ahead of further falls – Commerzbank

Key quotes

“USD/JPY weakness is showing signs of accelerating following its break of the potential uptrend from the 2020 low at 105.20/10 and the completion of a bearish continuation pattern and the market is now testing the 104.19 low of July. Whilst a fresh rebound from here should be allowed for, we look for a closing break in due course with support then seen next at 103.43 – the 78.6% retracement of the March rally – and with the ‘measured pattern objective’ at 103.14.”

“Immediate resistance is seen at 104.64/68, then 104.88, above which can see a deeper recovery back to the 13-day average and price resistance at 105.18/23, but with fresh sellers expected here.”