USD/JPY: Support at 110.83/73 to hold for a retest of resistance at 112.23/40 – Credit Suisse

USD/JPY has seen a sharp setback from long-term resistance at 112.23/40. However, analysts at Credit Suisse view look for 110.83/73 to try and hold for a retest of 112.23/40.

The pullback from 112.23/40 is temporary

“We look for 13-day exponential average and price support at 110.83/73 to ideally hold and for a break above 111.31 to be seen for strength back to 111.80/82 ahead of 112.08 and then a retest of 112.23/40. Our bias remains to look for an eventual break higher to see an important and large base complete.”

“We would expect the erosion of the 112.23/40 area to provide the platform for a move to the 2018 highs at 114.25/55 initially then 117.20 in due course, the long-term downtrend from April 1990.” 

“A close below 110.73 would warn of a deeper setback to 110.36, potentially the 55-day average at 110.08, which we look to prove a better floor.”