USD/JPY: Below 107.31/21 the risk turns lower – Credit Suisse

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USD/JPY has broken its uptrend from March to turn the risk lower with support seen at 106.77/74, the Credit Suisse analyst team report. 

Key quotes

“Below 107.31, the USD/JPY pair marks a more definitive rejection for a break of the uptrend from March, 13-day average, and near-term price support. This should see the risk turn lower again with support seen at 107.03 next, then 106.77/74, the mid-May low. Whilst a fresh rebound from here should be allowed for, a break in due course can open the door to a retest of the 105.98 outright May low.”

“Resistance at 107.31/36 ideally caps to keep the immediate risk lower. Above can see strength back to a cluster of resistances at 107.72/89, but with this expected to now cap.”