Credit Suisse discusses USD/JPY technical outlook and highlights the importance of price support at 109.04 for upside directional bias.
"We see more important price support at 109.04 and whilst above this latter level we continue to give the upside the benefit of the doubt for now. Resistance is seen at 109.94/97, beyond which should reassert the uptrend for strength back to 110.21 and then the late March high and potential downtrend from February 2020 at 110.78/97. Whilst a fresh setback from here should be allowed for our bias is for a break above here in due course to expose more important resistance at 111.95/112.40," CS notes.
"Below 109.04 would suggest the immediate trend has shifted sideways for a fall back to support seen next at the potential uptrend at 108.93, with better price support seen at 108.57,": CS adds.