FXStreet reports that analysts at Credit Suisse note that below 106.92, the USD/JPY pair marks a bearish continuation pattern to turn the risk lower within the long-term range.

“USD/JPY has finally seen a more decisive move lower for a clear break of key support from the twin lows of April at 106 to mark a bearish continuation pattern and more important turn lower within the longer-term sideways range stretching back to June 2016.” 

“Support is seen next at the 61.8% retracement of the March rally and price support at 105.20/14. Whilst we look for this to hold at first, a break is expected in due course with support then seen next at 104.49, then what we look to be better support, starting at the 78.6% retracement at 103.52/43 and stretching down to 103.09.” 

“Near-term resistance moves to 106.78, with 106.90/96 ideally capping to keep the immediate risk lower. Only above 107.35/45 though would warn of a false break lower.”