USD/JPY has completed a base above 109.79 and analysts at Credit Suisse look for strength back to the high for the year at 110.97.
See: Japanese yen underperformance set to continue – MUFG
Support moves higher to 109.04
“USD/JPY surged sharply higher yesterday and this has seen key price resistance from the mid-May highs at 109.75/79 cleared. This sees a base complete to resolve the near-term range higher to clear the way for strength back to challenge the late March high and potential downtrend from February 2020 at 110.79/97.”
“Whilst a fresh setback from 110.79/97 should be allowed for our bias is for a break above here in due course to expose more important resistance at 111.95/112.40. Beyond here would see a medium-term base complete.”
“Support moves to 109.76 initially, below which can ease the immediate upside bias for a slide back to 109.46, with 109.04 now ideally holding.”