USD/JPY set to past 111.68 and stretch up towards the 112.40 mark – Credit Suisse

USD/JPY has broken with ease above its downtrend from October 2018 and analysts at Credit Suisse stay bullish for what should be tougher resistance, starting at 111.68 and stretching up to 112.40. 

See: USD/JPY to move downward as US yields set to curtail its gains – Rabobank

Key quotes

“A further dramatic surge higher has seen USD/JPY break with ease its long-term downtrend from October 2018 and the trend is seen staying directly higher for a test of long-term resistance, seen starting at the 111.68/72 March 2020 high and stretching up to the 112.40 high of 2019, also the 61.8% retracement of the 2016/2020 bear trend.” 

“We look for the 112.40 level to finally cap and for a consolidation/corrective phase to emerge. Should strength instead directly extend, we see resistance next at 114.00/05.” 

“Support moves to 110.73 initially, then 110.56, with 110.27 needed to ease the immediate upside bias for a fall back to 109.85/75, but with fresh buyers expected here.”