USD/JPY: Pullback stays seen as healthy and corrective – Credit Suisse

USD/JPY maintains its base and economists at Credit Suisse stay bullish for 142.25/50 next and higher in due course.

Initial support seen at 138.48

USD/JPY extends its consolidation but with an important base seen in place above price and ‘neckline’ resistance at 137.70/98, this is seen as a healthy and corrective move lower. 

We stay tactically positive and post some further consolidation we look for a break above 140.94 for strength to the 61.8% retracement and late November 2022 high at 142.25/50. Whilst we continue to look for this to prove a tougher initial barrier we expect a break in due course with resistance then seen next at 145.12. 

Support is seen at 138.48 initially, with the ‘neckline’ to the base and 200-DMA at 137.78/31 ideally holding any deeper pullbacks if seen.