USD/JPY has surged sharply higher for a break above key long-term resistance from the 2019 and 2020 highs at 112.40 and 112.23 respectively. Economists at Credit Suisse expect the pair to trend higher for the 2018 highs at 114.26/55 initially and then 117.20, the long-term downtrend from April 1990. 

Support at 111.51/41 to hold

“Immediate resistance is seen at 113.20/21 ahead of 113.70/71 and then the 2018 highs at 114.26/55. Whilst we would look for an initial pause here we look for this to be temporary with resistance above 114.55 seen next at the 78.6% retracement of the December 2016/March 2020 fall at 114.92 and then 117.20 in due course, the long-term downtrend from April 1990.”

“Big picture, the ‘measured base objective’ is seen at 122.90/123.00.”

“Near-term support moves to 112.33, then 112.08/05. Below this latter area can see a deeper pullback to the ‘neckline’ to the base at 111.87, with 111.51/41 now ideally holding.”