USDJPY: Door is open for a move towards 133.10 — Credit Suisse

Credit Suisse economists point now to USDJPY at 138.00 by the end of the fourth quarter. However, a move towards the 133.10 signal is anticipated.

Levels around 143.00 will act as resistance for now

“Although the market has already done a great job of pricing in just a 50 basis point hike from the Fed in December, traders fear that the final rate could drop further from current levels of around 4.85% towards 4.50. % if there is a second successive US Core CPI downside surprise next month, exposing even more positioning vulnerability in the coming weeks and prompting us to target USDJPY at the end of the month. of the fourth quarter at 138.00”.

“We assume this leaves the door open for a move to 133.10, the 38.2% retracement of the 2021-22 USDJPY rally, which is also near its 200 SMA.”

“We suspect that the levels around 143.00 will act as resistance for now.”

Source: Fx Street

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