USD/JPY: Poised to race higher towards the 110.97 March high – Credit Suisse

USD/JPY has successfully held its uptrend from January at 108.43. Economists at Credit Suisse look for a break above 109.95/97 for strength back to test the 110.97 March high. 

Support remains at 109.27/22

“Key near-term resistance remains seen at 109.95/97, above which is needed to clear the way for strength back to the late March high and potential downtrend from February 2020 at 110.83/97.” 

“Whilst a fresh rejection from 110.83/97 should be expected, above in due course can open the door to a test of much important resistance at 111.96/112.40, beyond which would raise the prospect of a much more significant base.” 

“Support moves to 109.41 initially, then 109.27/22, which we look to try and hold. A break can see a test of the 55-day average at 108.91 and with 108.36/35 ideally holding any further weakness.”