Credit Suisse discusses USD/JPY technical outlook and adopts a tactical bullish bias over the coming weeks.
"USDJPY surged sharply higher and this has seen key price resistance from the mid -May highs at 109.75/79 cleared. This sees a base complete to resolve the near - term range higher to clear the way for strength back to challenge the late March high and potential downtrend from February 2020 at 110.79/97. 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.
"Support moves to 109.76 initially, below which can ease the immediate upside bias for a slide back to 109.46, with 109.04 now ideally holding," CS adds.