USD/JPY staged a strong move higher on Thursday. Analysts at Credit Suisse look for an eventual clear break above key price and trend resistance at 116.35/80 for a test of the 2018 highs at 118.61/66.

Initial support seen at 115.74

“Strength has already extended to retest the January YTD high and long-term downtrend from April 1990 at 116.35/80. Whilst a fresh rejection from here should be allowed for, we continue to look for an eventual clear break, with resistance seen next at the 2018 highs at 118.61/66.” 

“A fresh pause would be expected to be seen at 118.61/66, but with a move toward the “measured base objective” at 122.90/123.00 expected over the longer-term.”

“Support is seen at 115.74 initially, then 115.55/45, with 115.32 ideally holding to keep the immediate risk higher.”