Credit Suisse discusses USD/JPY technical outlook flags a small intraday base towards 106.44.
"USDJPY is trying to push higher in early trade this morning, breaking above short term moving averages and cluster of price highs around 105.50 to leave the market threatening a small base. The break above 105.64 confirms this base, with a break above the downtrend from early July at 105.84 then needed to confirm the short term risks have indeed turned back higher. Next resistance would then be seen at 106.11, before the longer term downtrend at 106.44. This would very much be in line with our view for higher US Bond Yields," CS notes.
"The market should now ideally hold above 105.50 and certainly 105.34/29 to maintain the basing potential. In contrast, a turn back lower and break below 104.93/83 would reassert the potential for a near -term top to suggest the core trend has turned lower again for a move back to potential trend support from March, today at 104.40, then we think back to the 104.00 low of September," CS adds.