USD/JPY looks for a deeper recovery toward 105.65/75 – Credit Suisse

The USD/JPY pair maintains its break above price resistance at 104.40 and the completion of a bull “wedge” to mark a more important reversal, exposing the 200-day average and November high at 105.65/75, analysts at Credit Suisse appraise.

Key quotes

“USD/JPY maintains a bullish ‘falling wedge’ reversal following its break above its downtrend from last March and then key recent high at 104.40 and we continue to look for a more sustained move higher.” 

“Resistance moves to 104.84/94 initially ahead of 105.13/17 and then the 200-day average and November high at 105.65/75, which is expected to prove a tough initial barrier. Should strength directly extend though, we see resistance next at 106.07/11 – the 38.2% retracement of the entire fall from last March.” 

“Near-term support moves to 104.46/44, then 104.32, with 104.07/03 ideally holding to keep the immediate risk higher. Below can ease the immediate upside bias for the near-term uptrend at 103.74.”