Credit Suisse discusses USD/JPY technical outlook and sees a scope for fresh sellers to emerge around the cluster of resistance around 107.01-06.
"USDJPY has removed resistance at 106.35 as suspected - the 38.2% retracement of the fall from early June - reinforcing the recent bullish “reversal day” to clear the way for a deeper recovery within the broader range with resistance next at the falling 55-day average and 38.2% retracement of the entire fall from March at 107.01/06, where we would then expect fresh sellers to show. Should strength directly extend we see resistance next at the late July high at 107.53, then the 50% retracement at 107.95," CS notes.
"Support is seen at 106.43 initially, then 106.25/20, which we look to try and hold. Below 105.94 though is needed to ease the immediate upside bias with support then seen next at 105.70, with a break here needed for a retest of 105.33/27," CS adds.