USD/JPY quickly turned back lower yesterday. The focus is back onto Credit Suisse’s 127.53/27 prior core objective, which now looks set to be broken more imminently.

USD/JPY looks to be turning back lower

“With US Yields failing to follow through on the recent reversal back higher, the short-term risk for USD/JPY quickly looks to be turning lower again, in line with our broader negative view.”

“Below 127.53/23 then would open up a move to next support at 126.36 and eventually the 61.8% retracement of the 2021/2022 uptrend at 121.44.”

“Resistance is seen at 130.36, which is the key 21-day exponential average, then 131.12, before the recent high at 131.58. A break above here would suggest a deeper recovery to 132.28, potentially 132.88, where we would look for a cap if reached.”