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USD/JPY strength continues to stall as expected at its 55-day average and downtrend from early June at 105.82/92 and analysts at Credit Suisse continue to look for this to cap and for the downtrend to ideally resume. Below 105.21 the pair would complete a minor top with support next at 104.88/83. 

Key quotes

“USD/JPY strength continues to stall as expected at price 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 stays seen at 105.26/21, 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 105.64. A close above 105.92 would warn of a more concerted move higher with resistance seen next at 106.22/29 and then 106.51/56.”