USD/JPY: Support for a pullback is seen at 121.02/120.72 – Credit Suisse

USD/JPY looks to have set an exhaustive peak at the 125.29/86 highs of 2015. Analysts at Credit Suisse look for a consolidation phase to emerge, with support seen at 121.02/120.72.

Consolidation phase to develop

“We have likely seen the peak in this phase of USD/JPY strength and with the JPY Trade Weighted Index also holding key support from the ‘neckline’ to its 2014/2016 base we look for further near-term weakness and then a consolidation phase.”

“Support for a pullback is seen at the 38.2% retracement of the rally from late February and 13-day exponential average at 121.02/120.72, which we look to try and hold for now. A closing break can see a deeper setback to support next at 119.75.” 

“Above 123.21 is needed to clear the way for a move back to 124.31, but with a break above here needed to clear the way for strength back to the 125.11/89 highs.”