USD/JPY has seen yet another further dramatic surge higher. Analysts at Credit Suisse see scope for strength to extend a touch further to the 2015 highs at 125.29/86.

Resistance from the 2015 high at 125.86 ideally caps at first

“We see scope for strength to extend a touch further yet to test the 2015 highs at 125.29/86 but with daily, weekly and monthly RSI momentum now well above 80, we suspect we are now in the final exhaustive stages of this phase of the uptrend. We thus look for 125.86 to try and cap, and for a consolidation phase to emerge. A direct break though can see resistance next at 127.21/34.” 

“Support moves higher to 124.34 initially, then 124.02, with 123.87 needing to hold to keep the immediate risk higher. Below can see a setback to 123.58, then 122.03/121.97.”