Credit Suisse discusses USD/JPY technical outlook and adopts a tactical bearish bias towards 107.65 in the near-term.
" We still believe there is scope for some further weakness for USDJPY from here. The market has recovered back above the 200-day average at 108.43, with the potential uptrend from August just below at 108.25. Below here in due course though would open up the 38.2% retracement of the same move at 108.06. Below here the key 107.65 low is the next key level in focus, which is likely to prove a particularly tough barrier in our view and we would be alert to the possibility of another potential base forming in this zone, particularly with the 50% retracement just below at 107.34," CS notes.
"Resistance stays at 109.27/35, above which would instead set a small base to relieve the downside pressure, with the next level then seen at 109.65/66, before the 109.76/79 breakdown point. Only back above 110.29 would reassert the upmove though," CS adds.