Credit Suisse has expressed a bullish outlook on the USD/JPY currency pair, aiming for a retest and eventual break above 145.07/12 to reach the "measured base objective" at 148.57.
Here's a summary of their analysis:
Recent Peak and Pullback: The USD/JPY strength peaked at 143.89 last week, followed by a steady setback. However, this pullback has so far been contained above the rising 55-day average, currently at 141.18.
Bullish Expectations: Credit Suisse remains bullish on the pair, expecting the 55-day average to ideally hold on a closing basis. A break above 142.84/89 would pave the way for strength back to 143.89 and then a retest of 145.07/12.
Longer-Term Target: While they allow for the possibility of a fresh rejection from the 145.07/12 level, the bank's stance remains bullish for an eventual break of this level, targeting the 148.57 mark.
Potential Downside Risk: Should the pair close below 141.18, Credit Suisse warns of further and potentially lengthy sideways ranging. Support is seen next at 140.70, with more substantial support starting at 138.26/07.
Conclusion: Credit Suisse's analysis of USD/JPY is primarily bullish, eyeing a retest and eventual break above 145.07/12. The bank's analysis identifies key levels and includes caution regarding potential downside risks, providing a comprehensive view for traders and investors considering this currency pair.