USD/JPY strength seems to be finally stopping at 130.00 in the short term. But while analysts at Credit Suisse see the risk for finally a pause in the rally and some consolidationthe larger outlook remains constructive and a sustained move above neckline resistance at 127.33 would suggest the completion of an even larger multi-year secular base.
USD/JPY in the process of establishing a multi-year secular base
“We expect 130.00 to cap USD/JPY initially for some pullback/consolidation. A sustained break above the neckline resistance at 127.33 suggests that a base is forming for a significant increase in the coming years“.
“The resistance above 130.00 will be seen in the 78.6% retracement of the 1998/2011 crash in 132.20before the peak of 2002 in 135.20. Although, we see room for an increase to the 147.62/153.01 in the next years”
“Support at 125.09 is needed to hold the retracement from 130.00 to maintain immediate risk to the upside.”
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
