USD/JPY has unexpectedly surged higher over the past few sessions to negate its top and now looks as though it has completed a bullish continuation pattern. Thus, analysts at Credit Suisse expect the pair to move back quickly toward the 131.35 highs.

USD/JPY confirms a bullish “wedge” pattern

“USD/JPY now looks as though it has formed a clear bullish ‘wedge’ continuation pattern, which signals a quick move up to the 131.35 high, realigning the short-term setup with our long-term bullish view. Above here would open up 132.30/39 next and eventually our next core medium-term objective at 135.00/135.20.” 

“Near-term support moves to 128.47/30. More important support is seen at the recent low at 126.39/37 and the 55-day average, which we now look to hold. Next important support below here is seen at the 125.11/124.87 pivot, which includes the 38.2% retracement of the rally from late February.”