Credit Suisse discusses USD/JPY technical outlook and highlights the importance of holding the 107.25 for near-term direction.
"USD/JPY support from the “neckline” to the small base continues to hold, seen at 107.25 and the immediate outlook stays finely balanced. Above 107.78 is needed to ease the pressure off the base “neckline” to reassert an upward bias for strength back to 108.17/24, then the 200-day average at 108.39/43. Whilst we would look for this to cap at first, a break in due course should see resistance next at the “measured base objective” at 108.84, with the top of the downtrend channel from late March seen at 109.11," CS notes.
"Below 107.25 would see the base neutralised to reinforce the broader sideways range with support seen next at 107.05, then 106.80/79. Removal of here can see a retest of 106.12/105.98," CS adds.