USD/JPY is seeing a sharp pullback in line with the ‘risk-off’ phase emerging. Analysts at Credit Suisse see scope for a fresh correction to emerge with more important support seen at 112.80/73.

A ‘risk-off’ phase is now seen likely to delay the uptrend

“Whilst our broader outlook stays bullish, we see scope for a fresh correction/consolidation to emerge here in line with further equity weakness.” 

“A closing break below the near-term uptrend from late September at 114.12/02 would confirm a deeper setback to the 113.59 recent reaction low, then more importantly at the 112.80/73 November low and rising 55-day average, with better support expected here.”

“Resistance is seen at 114.78 initially, above which can see a move back to 115.03, with better resistance now expected at 115.24/52.”