USD/JPY is falling sharply again. Economists at Credit Suisse stay bearish for an eventual test of the 200-Day Moving Average (DMA), now at 134.09.

Initial resistance seen at  139.00

“We maintain our core bearish outlook and we look for an eventual sustained break lower for a test of the 200DMA, now at 134.09. We would not rule out an overshoot to the 38.2% retracement of the 2021/2022 uptrend not far below at 133.09, but we continue to look for a floor in this 134/133.09 zone.” 

“Resistance is seen at 139.00 initially, with a break above 139.46/60 needed to ease the immediate downside bias for a recovery back to the 13DMA at 140.63, but with fresh sellers expected here.”