USD/JPY is expected to see an eventual break below the 38.2% retracement of the 2021/2022 uptrend at 133.09 for support next at 130.40, then 127.47/27, economists at Credit Suisse report.

Break above 138.18 is needed to trigger a deeper recovery

“We look for a sustained break below the 200-Day Moving Average at 135.66 for a retest of the recent low at 133.62, then the 38.2% retracement of the 2021/2022 uptrend at 133.09. Whilst a fresh hold here should be allowed for, we continue to look for an eventual close below here for the 130.40 August low, then the ‘neckline’ to the multi -year base at 127.47/27.” 

“Whilst resistance at 137.43 ideally caps, above 138.18 is needed to suggest a deeper recovery can emerge to test 139.90.”