USD/JPY: At risk of a deeper corrective recovery to 136.67/86 – Credit Suisse

USD/JPY closed the third straight in positive territory on Wednesday. Analysts at Credit Suisse expect the pair to stage a race higher on a weekly close above the 133.06 resistance.

Move below 129.80 needed to reassert a downward bias

“Key resistance from the 55-Day Moving Average looks to be breaking. Above 133.06 on a weekly closing basis should mark a conclusive break, with resistance then seen next at 134.78 ahead of now we think the 38.2% retracement of the 2022/2023 fall and 200-DMA at 136.67/86. We look for this to then prove a much tougher barrier for an eventual turn lower again.”

“Below 129.80 is needed to reassert a downward bias for a retest of 127.53/23. An eventual break below here can see support next at 126.36 ahead of the 61.8% retracement of the 2021/2022 uptrend at 121.44.”