USD/JPY has seen further tactical gains. Economists at Credit Suisse analyze the pair’s technical outlook.

Temporary pause

Whilst we look for 142.25/50 to prove a tough initial barrier, for a possible pullback/consolidation, our broader outlook stays firmly bullish, and we look for a break above here to eventually take place. This would then be seen to infuse fresh strength into the broader uptrend for a move to the next meaningful resistance seen at the ‘neckline’ to the October/November 2022 top at 145.00/12.

A move back below 139.85 would be seen to add weight to our view for a consolidation phase, with next notable support below here seen at the June low at 138.48, then the ‘neckline’ to the base and 200-DMA at 137.78/23, which ideally proves a strong floor