Credit Suisse discusses USD/JPY technical outlook and stays biased higher for an eventual test of key resistance at 109.06/37
"A quiet end to a quiet week leaves the immediate outlook unchanged, with the market still holding its rising 13-day average and price support at 108.35/25, but with the market still unable to stage a clear break of resistance at 108.73.
Our bias though remains for a clear move above here to be seen to reassert the upmove for a move back to the 108.94 recent high, then the 200-day average at 109.06. A close above here should see a test of key resistance from the August high and 61.8% retracement of the April/August fall at 109.32/37, above which at any stage would see an important “head & shoulders” base established to mark a major turn higher, with resistance seen next at 110.24/34," CS notes.
"Support at 108.51/49 now ideally holds to keep the immediate risk higher. Below 108.25 would now mark a near-term top, with support then seen initially at 108.04/00," CS adds.