USD/JPY has fallen sharply post US payrolls. In the view of analysts at Credit Suisse, the recent strength has been corrective only and stay bearish for 127.53/27.

Resistance at 134.78/89 set to cap

“The recovery in USD/JPY last week was unable to hold above the 134.50 recent high. This adds weight to the core view recent strength has been corrective only.” 

“Below support at 131.30 should see the immediate risk stay lower for a retest of the 129.62/52 recent low. An eventual break below here should clear the way for a move to our 127.53/27 core objective – the ‘neckline’ to the multi-year base and 50% retracement of the 2020/2022 uptrend.”

“Resistance is seen at 132.96 initially, then 133.24, with 134.78/89 expected to remain a major cap.”