Credit Suisse discuses USD/JPY technical outlook and maintains a tactical bearish bias.
"USDJPY remains under pressure after the completion of a top below the lows from May and June as well as “neckline” support at 106.15/105.98 to suggest a more material turn lower is underway. Indeed, next support at 105.20/12 has now been removed as expected – the 61.8% retracement of the March rally – and we look for a direct resumption of the downtrend support seen next at 104.49/39 ahead of 103.98/94 and then 103.43 – the 78.6% retracement of the rally from March. Whilst we would look for this to hold at first, a break in due course should see support next at 103.09, with the “measured top objective” seen set lower at 102.34," CS notes.
"Resistance is seen at 105.38 initially, with 105.70 ideally capping to keep the immediate risk lower. Above can see a rebound to 106.08, potentially 106.21, but with this then ideally capping,"CS adds.