USD/JPY is seeing its consolidation phase as looked for following strength to just shy of the psychological 140.00 barrier. In the view of analysts at Credit Suisse, weakness stays seen as a correction in the long-term uptrend, although this may persist for some time yet.

Weekly MACD has crossed lower

“With weekly MACD crossing lower and with 10yr US Bond Yields maintaining a top we look for this corrective phase to extend further and potentially for a lengthy period of time.”

“Support is seen at 132.52 initially, below which would warn of a fall back to 130.40, then the 38.2% retracement of the 2022 rally at 129.50. We would not rule out a test of the ‘neckline’ to the multi-year base at 127.40, but our bias remains to look for an important floor in this 129.50/127.40 zone.”

“Big picture, we continue to view weakness as corrective, with our core long-term objective at 147.62/153.01 – the 38.2% retracement of the entire fall from 1982 and price high of 1998.”