USD/JPY: The risk turns lower with support seen at 108.19 – Credit Suisse

USD/JPY has seen a further sharp fall after the repeated rejection of its falling 55-day average. Economists at Credit Suisse stay biased lower for support at the August low at 108.73 and more likely the 200-day average at 108.19/07. 

See: USD/JPY to drop substantially towards the 107.28 mark – Commerzbank 

Resistance now at 109.75

“We see the risk lower still and we look for a clear break below 109.12 for a test of the 108.73 August low. Whilst a fresh hold will be looked for here at first, we suspect the overall roadmap for the market remains for a fall back to what we would look to be better support from the rising 200-day average and 38.2% retracement of the 2021 uptrend at 108.19/07.” 

“Resistance is seen at 109.46/53 initially, with the immediate risk seen lower whilst below 109.75. Above 110.17 though remains needed to see the ‘outside day’ negated for a move back to 110.45/55.”