USD/JPY sets an important base, clearing the way for a more significant turn higher – Credit Suisse

USD/JPY has seen a strong move higher for a break above key price and “neckline” resistance at 137.70/98 to set an important base, which is expected to clear the way for a more important turn higher, analysts at Credit Suisse report.

USD/JPY has already established a base

“USD/JPY has seen a further strong move higher for a break above key price and ‘neckline’ resistance at 137.70/98 to negate our ‘triangle’ roadmap and instead set an important base. This is expected to clear the way for a more important turn higher with resistance then seen next at the 50% retracement of the 2022/2023 fall at 139.54/59, then the 61.8% retracement and late November 2022 high at 142.25/50, which we look to prove a tougher initial barrier.”

“Support is seen at 107.29/10 initially, with 135.60 now ideally holding fresh pullbacks if seen.”