Categories: Markets

USD / JPY would confirm abrupt reversal above 105.75 / 92 – Credit Suisse

USD / JPY reversed dramatically higher, denying last week’s bearish “outside week”, but it still needs to leave 105.75 / 92 behind to suggest a base has been established, the Credit Suisse team of analysts estimates.

Key statements:

“USD / JPY has seen an abrupt and aggressive reversal from its bearish ‘week out’ to climb back well above key support at 104.02 / 00, not only negating last week’s session, but also increasing the outlook for a short-term basis. ”

“Key resistance is at 105.75 / 92 – the 38.2% retracement of the decline since June and price resistance – a close above which would also move past the 55-day average to suggest that a base is now also at. instead, pointing to a more sustained recovery. Then we would see resistance at 106.11, then further resistance from the retracement at 106.43 / 56 “.

Support moves to 104.74 / 70 initially, below which a drop back to 104.41 can be seen, then 104.02 / 00 again, but new buyers are expected here. ”

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Credits: Forex Street