Dollar/yen is trading around 109, leaning lower but maintains a safe distance from the critical 108.10 level. What’s next? The team at Credit Suisse sees downside pressure.
Here is their view, courtesy of eFXnews:
Credit Suisse FX Technical Strategy Research argues that USD/JPY bounces from current levels looks temporary, with resistance at 110.85/111.05 now ideally capping to keep the risks directly lower to test the low of the year at 108.13.
“Below here would establish a large “triangle” continuation pattern to confirm the start of a more significant bear trend for 107.50 initially, then the 61.8% retracement of the June/December 2016 rally at 106.52, ahead of the potential uptrend from September 2012 at 105.20, where we would expect buying. Resistance moves to 110.36/44, ahead of 110.85/111.05.
…Resistance moves to 110.36/44, ahead of 110.85/111.05. Above here would complete a base to turn the risk higher for 112.20 next,” CS adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
Share
