USD/JPY: Support at 133.09 to hold temporarily – Credit Suisse

USD/JPY lost nearly 500 pips last week. Analysts at Credit Suisse continue to look for the 38.2% retracement of the 2021/2022 uptrend at 133.09 to hold for a consolidation phase, albeit now only a temporary one.

Initial resistance seen at 135.97/136.02

“USD/JPY has seen a further sharp fall for a break of its long-term 200-Day Average (currently at 134.62) for a move to just shy of our lower target of the 38.2% retracement of the 2021/2022 uptrend at 133.09. We continue to look for a floor in this (broad) 134.62 /133.09 zone for now for the unfolding of a consolidation phase.”

“Big picture, we now look for an eventual close below 133.09 to clear the way for further weakness to the 130.40 August low next, then the 50% retracement and ‘neckline’ to the multi-year base at 127.47/27. 

“Resistance is seen at 135.57 initially, with a break above 135.97/136.02 needed to clear the way for a recovery back to 137.50, potentially the 13DMA at 138.14/18.”