USD/JPY looks set for an incredibly volatile session. However, the market is still holding key support at 139.40 and analysts at Credit Suisse stay biased higher for now.

Scope for a pause

“USDJPY looks set for an aggressive bearish ‘outside day’ following the BoJ’s intervention after the market tried to push above psychological resistance at 145.00, which is becoming an increasingly important line in the sand.” 

“We may see a short-term period of consolidation, however, we stay biased higher over the medium-term, with next resistance seen at confirmed trend resistance from late April at 146.80. Thereafter, our core objective remains at 147.62/153.01 – the 1998 high and 38.2% retracement of the entire 1982/2011 bear trend. It is here we would be alert to a potentially important top.” 

“Key support stays at 139.42/40, which we expect to hold to keep the risks skewed directly higher.”