USD/JPY looks to be stabilizing above resistance at 113.96. With a major base in place, economists at Credit Suisse maintain their core bullish outlook for a move back to 115.52/62.

USD/JPY look for a resumption of the core bull trend 

“We look for a sustained hold above resistance at 113.96 to suggest the recent consolidation is over and core uptrend resumed. If confirmed we will then look for strength back to 115.52/62 initially, ahead of the long-term downtrend from April 1990, now seen at 116.85.” 

“Whilst we would expect to see a fresh phase of consolidation to emerge at 116.85, we look for a break higher post this for a challenge on the 118.61/66 highs of late 2016 and 2017.” 

“Near-term support moves to 113.95, then 113.55, with a break below 113.15 needed to reassert a downward bias again for a retest of the 112.53/45 late November low and 38.2% retracement of the rally from April.”