USD/JPY is approaching its near-term uptrend and price support at 104.40/26, where analysts at Credit Suisse look for an attempt to find a floor. On the flip side, resistance is seen at 104.85, then 105.33
Key quotes
“USD/JPY continues its retreat following the completion of a minor top below 105.33 and this leaves the market approaching what we look to be better support at the near-term uptrend from early January and early January high at 104.40/26. Our bias remains to look for a fresh floor here for an attempt to turn higher again.”
“Resistance is seen at 104.85 initially, above which should see a move back to 105.33 and then the 200-day average at 105.56. A close above here and then 105.77 is needed to reassert the recovery for the “measured wedge objective” at 106.95/107.05.”
“Below 104.26 can see weakness extend to the 55-day average at 103.98/94, but with fresh buyers again looked for here. A close below though would warn of a more serious turn lower to test 103.64/56, potentially 103.33.”
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