USD/JPY spotlight turns back to long-term resistance at the 2015 highs at 125.29/86. A close above here would reinforce the view that the pair is seeing a secular break higher and the formation of a potential multi-year base, economists at Credit Suisse report.

Above 125.86, next resistance aligns at 127.33

“Despite high weekly and monthly RSI momentum, the immediate risk stays seen higher and a break above the 125.86 high would reinforce the view that we are seeing a secular break higher and the formation of a potential multi-year base. We would then see resistance next at the potential trendline/’neckline’ from the 2007 and 2015 highs at 127.33.”

“A sustained move above 2015 highs at 127.33 is needed in our view to confirm a major base, with resistance then seen at 127.95, ahead of 128.78 and then the 129.07 high of May 2002.” 

“Support is seen at 125.11 initially, then 124.82, with 124.08 ideally holding to see the immediate risk stay higher. Below can see a setback toward price support at 123.47, but with fresh buyers expected to be seen ahead of here.”