Credit Suisse discusses USD/JPY technical outlook and sees a scope for a move towards 106.56 in the near-term.
"USDJPY extends its recovery after its failure to hold its move below the 104.19 July low and the subsequent completion of a base above 104.83/88. Resistance from the 13 -day average has also been cleared to reinforce the base and we see resistance next at 105.82/92. With more important resistance seen just above here at the 55 -day average and downtrend from early June at 106.02/10, we would look for this to then cap for an attempt to resume the downtrend. A close above here though would warn of a more concerted move higher with resistance seen next at 106.30 and then 106.51/56," CS notes.
"Support is seen at 105.09, with 104.88/83 now ideally holding. Below would suggest the recovery may already be over with support then seen next at 104.40/37," CS adds.