USD/JPY continues to hold support from its 13-day exponential average at 129.32. Analysts at Credit Suisse stay directly bullish for next resistance at 132.20 – the 78.6% retracement of the 2002/2011 fall.

Support at 128.65/60 set to hold

“Above the 131.25/35 highs should see resistance next at 132.19/20 ahead of 133.09/13 and then the top of the short-term uptrend channel, today seen at 133.41. Whilst we would look for this to cap at first, above in due course should see a move to our next objective of the 78.6% retracement of the 2002/2011 fall at 132.20. Our bias would then be for a consolidation phase to unfold here.” 

“Big picture, with a multi-year base in place, we stay bullish for the 135.20 high of 2002 and eventually into the 147/153 zone.” 

“Support is seen at 130.38 initially, then 130.17, with 129.42/32 now ideally holding to keep the immediate risk higher.”

“Only below 128.65/60 would warn of a near-term top.”