USD/JPY: Close below 55-DMA at 132.50 to trigger a fall toward the 127.53/23 lows – Credit Suisse

USD/JPY looks to be staging a more decisive rejection from the 137.10/40 recovery target as looked for. Economists at Credit Suisse expect the broader downtrend to reassert itself.

Weekly close above 137.51 to open up next resistance at 139.54/59

“USD/JPY looks to have finally seen a more decisive rejection of our recovery target of the 200-DMA and 38.2% retracement of the 2022/2023 fall at 136.67/137.40 and we continue to look for the broader downtrend to reassert itself.”

“A close below the 55-DMA at 132.50 is needed to add weight to our view for a fall to support next at 129.80 and eventually the 127.53/23 lows again.” 

“Above 137.51 on a weekly closing basis would suggest a more important low was established in January and strength can extend further with resistance next at the 50% retracement of the fall from October at 139.54/59.”