USD/JPY to plummet towards 108.19 on a break below key support at 109.07 – Credit Suisse

USD/JPY remains under pressure, leaving the spotlight on key support from the recent low and 61.8% retracement of the rally from late April at 109.07/04. A clear break here would warn of a more significant turn lower for a fall to 108.19 – the May low and 38.2% retracement of the entire 2020 upmove, as reported by economists at Credit Suisse.

Resistance remains seen at 109.89/97

“USD/JPY remains under pressure. The break below its 55-day average leaves the spotlight on key support from the recent low and 61.8% retracement of the rally from late April at 109.07/04. A clear break here can see a top complete to warn of a more significant turn lower with support seen next at 108.57 ahead of 108.35 and then 108.19 – the May low and 38.2% retracement of the entire 2020 upmove. Our bias would then be to look for a fresh floor here.” 

“Resistance is seen at 109.37 initially, then 109.60, with a break above 109.89/97 needed to ease the immediate downward bias for a recovery back to 110.21/29, then 110.41/42.”